Overall cement sales (domestic and exports) have shown a healthy growth of 6.35% during the first five months (July-November) of the current fiscal year compared to the same period previous year.
Most of this growth in sales came from the domestic market, which grew by 9.39%, whereas cement exports have witnessed a contraction of 2% during the above mentioned period, according to the All Pakistan Cement Manufacturers Association (APCMA) spokesperson.
Citing the rising input cost including electricity and gas prices, APCMA spokesperson urged the federal government to address issues impeding the potential of the cement industry that is still performing well despite the turmoil in the economy.
Analysing zone-wise dispatches, north-based cement mills dispatched 8.872 million tons to domestic markets during July to November 2014, 11.03% higher than dispatches during the same period last fiscal year. Exports from northern cement mills declined 2.183 million tons, by 8.023 % over the same period of last fiscal year.
In southern region, the cement mills experienced slow growth in domestic markets as against dispatches of 1.664 million tons during July to November 2013, the domestic dispatches inched up by only 1.52 % to 1.689 million tons.
However there was a definite turnaround in exports that increased 10.45% to 1.266 million tons from 1.146 million tons during the corresponding period last year.
Cement dispatches to domestic markets during November 2014 were 2.370 million tons compared with 2.125 million tons during the same month last year, up 11.51%.
Cement exports during November 2014 were 0.659 million tons against 0.601 million tons during November 2013, up 9.76%. The total dispatches during November 2014 were 3.029 million tons compared to 2.726 million tons during the same month last year, up 11.13 %.
Cement sector is one of the few documented sectors of Pakistan and the companies are listed on leading stock exchanges, the spokesperson said, adding that the sector believes it often faces undue criticism that discourages corporate investors.
Published in The Express Tribune, December 5th, 2014.
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