Cement sales fall to 2017 level

Consequent to increased cement prices due to "irrational" taxation, coupled with low demand, local sales have dropped 18% and reached the 2017 level, says an industry association.

Cement dispatches decreased 5.63% in September 2024 and stood at 3.540 million tons against 3.751 million tons in the same month of last fiscal year.

According to the data released by the All Pakistan Cement Manufacturers Association, local sales of the industry totaled 2.650 million tons in September 2024 compared to 3.233 million tons in September 2023, showing a decline of 18.02%.

On the export side, shipments increased 71.52% as volumes jumped from 570,692 tons in September 2023 to 978,871 tons in September 2024.

North-based cement mills dispatched 2.407 million tons, showing a decline of 12.78% against 2.759 million tons sold in September 2023. South-based mills dispatched 1.246 million tons, higher by 14.23% compared to 0.992 million tons in September 2023.

In domestic markets, the northern mills sold 2.222 million tons of cement in September 2024, registering a fall of 15.51% against 2.630 million tons in September 2023.

Similarly, south-based mills supplied 470,931 tons to local markets, which was 28.95% less compared to dispatches of 662,786 tons in September 2023.

Exports from north-based mills rose 42.93% as supplies surged from 142,226 tons in September 2023 to 203,280 tons in September 2024. In the same manner, exports from the south increased 81.02% to 775,591 tons in September 2024 from 428,466 tons last year.

Overall, in the first three months (July-September) of the current fiscal year, total cement dispatches (domestic sales and exports) were calculated at 10.269 million tons, down 13.59% from 11.885 million tons in the corresponding period of last year.

In a statement, a spokesman for the All Pakistan Cement Manufacturers Association commented that September was the fourth straight month when the industry experienced a decline in cement dispatches.