September: Cement dispatches decline 6% in north, 16% in south

Data shows total sales dropped 8% year-on-year, amounted to 2.9m tons

KARACHI: Total cement industry dispatches in the month of September 2015 have declined by 8% year on year to 2.9 million tons compared to 3.2 million tons in September 2014, according to provisional cement sales data.

InvestCap Research report on Monday said that cement dispatches have dropped by 6% year on year in north region while 16% year on year plunge was experienced in south region of the country.

Total cement dispatches in the month of September 2015 has declined by 5% compared to August 2015.

In local market, cement demand continue to grow owing to advancement in public and private sector construction projects and showed an annual growth of 2% year on year in September 2015 to 2.5 million tons as compared to 2.4 million tons in September 2014.

However, on the other hand, cement export market continued its downward trajectory and declined by mammoth 40% year on year touching 0.44 million tons in September 2015 compared to 0.73 million tons in September 2014.

Regional analysis of cement dispatched for the month of September 2015 revealed that northern region recorded an increase of 3% year on year in local dispatches to 2.05 million tons while exports plummet by 42% year on year to 0.28 million tons in the same period.

Whereas southern region experienced a declining situation as their local sales decreased by 4% year on year to 0.41 million tons while export volumes dropped by 35% year on year to 0.16 million tons in September 2015.

On three months cumulative basis, total industry dispatches rose by meagre 1% year on year to 8.22 million tons in first three months (Jul-Sep) of fiscal year 2016 from 8.16 million tons during the same period of last fiscal year.

While local market showed 11% year on year surge in dispatches that clocked at 6.75 million tons whereas export declined by 29% year on year to 2.06 million tons.

In near future, it is expected that overall industry dispatches will improve specifically in the local market owing to higher private and public sector construction projects and positive triggers from mega construction projects under the CPEC, the report added.

However, falling exports are alarming and it will continue its downward trajectory but this decline would be addressed by increase in local dispatches. The security situation has improved in the country which will also boost the private sector growth in construction sector.

Published in The Express Tribune, October 6^th, 2015.

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