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LAHORE: Cement off-take continued its sliding trend mainly due to the economic and political instability in the country and sluggish construction activities, data showed on Thursday.
However, this year the rainy season has prolonged along with devastating floods across the country.
The cement dispatches declined by 23.98 percent in August 2022 as 3.296 million tonne cement was dispatched during August 2022 as compared to the 4.336 million tonne in the same month of the last fiscal year.
According to the data released by All Pakistan Cement Manufacturers Association, local cement dispatches by the industry during the month of August 2022 were at 2.90 million t tonne compared to 3.81 million tonne in August 2021, showing a decline of 23.75 percent.
Exports dispatches also declined by 25.70 percent as the volumes reduced from 521,468 tonne in August 2021 to 387,440 tonne in August 2022.
In August 2022, North based cement mills dispatched 2.59 million tonne cement showing a decline of 20.93 percent against 3.28 million tonne in August 2021. South-based mills dispatched 700,436 tonne cement during August 2022 that was 33.50 percent less compared to the dispatches of 1.05 million tonne during August 2021.
North-based cement mills dispatched 2.50 million tonne cement in domestic markets in August 2022 showing a decline of 20.29 percent against 3.14 million tonne dispatches in August 2021. South based mills dispatched 404,959 tonne cement in local markets during August 2022 that was 39.88 percent less compared to the dispatches of 673,572 tonne during August 2021.
Exports from North based mills also declined by 35.15 percent as the quantities reduced from 141,804 tonne in August 2021 to 91,963 tons in August 2022. Exports from the South also reduced by 22.17 percent to 295,477 tonne in August 2022 from 379,664 tonne during the same month last year.
During the first two months of the current fiscal year, total cement dispatches (domestic and exports) were 5.336 million tonne that is 35.20 percent lower than 8.235 million tonne dispatched during the corresponding period of last fiscal year.
Domestic shipments during this period were 4.795 million tonne against 7.261 million tonne during the same period last year showing a reduction of 33.95 percent.
Export dispatches were also 44.47 percent less as the volumes reduced to 540,957 tonne during the first two months of the current fiscal year compared to 974,245 tonne exports done during the same period of last fiscal year.
North-based mills dispatched 4.121 million tonne cement domestically during the first two months of current fiscal year showing a reduction of 31.69 percent than cement dispatches of 6.033 million tonne during July-August 2021.
Exports from the North declined by 41.53 percent to 162,210 tons during July-August 2022 compared with 277,422 tonne exported during the same period last year.
Domestic dispatches by South-based Mills during July-August 2022 were 674,436 tonne showing a reduction of 45.08 percent over 1.228 million tonne cement dispatched during the same period of last fiscal year.
Exports from South declined by 45.65 percent to 378,747 tonne during July-August 2022 compared with 696,823 tonne exported during the same period last year.
A spokesman of All Pakistan Cement Manufacturers Association emphasized that it was the need of the time for the government to come up with industry-friendly policies.
“Massive reduction in cement demand due to economic instability, day by day increasing energy costs coupled with the currency devaluation, are having serious implications on the industry,” he said.
He added that the floods were yet another challenge for the government as restoration of damaged infrastructure and rehabilitation of masses needed to be addressed on top priority to bring the country out of the difficult situation.
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