Cement dispatches decline 16.82 per cent during November

LAHORE: The cement dispatches declined 16.82 per cent in November to clock-in at 4.009 million tonnes from 4.820 million tonnes during the same month of last fiscal year.

The local cement dispatched by the industry during November 2022 were 3.86 million tonnes, compared with 4.12 million tonnes in November 2021, showing a decline of 6.38 per cent, data released by All Pakistan Cement Manufacturers Association (APCMA) showed.

The exports also declined by a massive 78.76 per cent as the volumes reduced to 147,757 tonnes in November, compared with 695,779 tonnes in the same month of last year 2021.

The north based mills dispatched 3.267 million tonnes cement, showing a decline of 7.31 per cent against 3.525 million tonnes dispatched in November 2021.

The south based mills dispatched 742,158 tonnes cement during November 2022, down 42.71 per cent compared with the dispatches of 1.29 million tonnes during November 2021.

The north based mills dispatched 3.16 million tonnes of cement in the domestic markets in November 2022, showing a decline of 8.83 per cent, compared with 3.47 million tonnes dispatched in November 2021.

Similarly, south based mills dispatched 698,225 tonnes cement in the local markets during the month, which was 6.6 per cent higher compared to the dispatches of 654,983 tonnes during November 2021.

The exports from north based mills increased 87.97 per cent as the quantities increased from 55,234 tonnes in November 2021, to 103,824 tonnes in November 2022. While, exports from south declined 93.14 per cent to 43,933 tonnes in November from 640,545 tonnes during the same month last year.

The total cement dispatches, domestic and exports, were 17.88 million tonnes during the first five months of the current fiscal year, down 21.78 per cent, compared with 22.86 million tonnes dispatched during the corresponding period of last fiscal year.

The Domestic dispatches during the period under review were 16.35 million tonnes against 20 million tonnes during the same period last year, showing a reduction of 18.26 per cent.

The exports were also 46.4 per cent down as the volumes reduced to 1.52 million tonnes during the first five months of the current fiscal year, compared with 2.85 million tonnes during the same period of last fiscal year.

The north based mills dispatched 13.56 million tonnes of cement domestically during the first five months of the current fiscal year, showing a reduction of 19.18 per cent from 16.78 million tonnes during the same period of fiscal year 2021.

The exports from the north increased 1.48 per cent to 523,647 tonnes during July-November of 2022, compared with 516,003 tonnes exported during the same period of last year.

The total dispatches by north based mills reduced by 18.57 per cent to 14.08 million tonnes during the first five months of the current financial year from 17.30 million tonnes during the same period of last financial year.

The domestic dispatches by south based mills during the period (July-November) 2022 were recorded at 2.78 million tonnes, showing a reduction of 13.47 per cent from 3.22 million tonnes cement dispatched during the same period of last fiscal year.

The exports from south declined 56.97 per cent to 1 million tonnes during July-November 2022, compared with 2.33 million tonnes exported during the same period of last year.

The total dispatches by south based mills reduced 31.76 per cent to 3.79 million tonnes during the first five months of the current financial year, from 5.55 million tonnes during the same period of last financial year.

APCMA spokesman urged the State Bank of Pakistan to allow opening of letter of credits (LCs) for renewable energy projects. “With the start of winter season, gas supplies are also facing interruptions compelling us to use expensive furnace oil, thereby increasing the cost of production.”

Uncertain political situation prevailing in the country since the last many months, its economic impacts resulting in sluggish demand and devaluation of the currency are some of the factors that need to be addressed in order to take the industry out of these difficult times, he added.

“The government, besides ensuring political stability, must accelerate development activities. This would boost production in 40 construction related industries,” he remarked.