Cement dispatches fall 16.58% in January

LAHORE: The cement dispatches declined 16.58 per cent to 3.95 million tonnes in January 2022, compared with 4.73 million tonnes during the same month of the last year.

According to the data released by All Pakistan Cement Manufacturers Association (APCMA), the local cement dispatched by the industry during January 2022 recorded a decline of 15.87 per cent to 3.4 million tonnes, compared with 4.04 million tonnes in January 2021.

The exports showed a decline of 20.71 per cent as the volumes reduced from 694,934 tonnes in January 2021, to 551,006 tonnes in January 2022.

The north based mills in January 2022 dispatched 2.707 million tonnes of cement in the domestic market, showing a decline of 18.29 per cent, against 3.313 million tonnes during the same month last year.

Exports from the north based mills declined 94.12 per cent as the quantities reduced from 233,404 tonnes during January 2021 to 13,727 tonnes during January 2022.

The south based mills dispatched 693,453 tonnes of cement in the local market during January 2022 recording a decline of 4.82 per cent, compared with 728,568 tonnes during January 2021.

The south mills exports increased 16.41 per cent to 537,279 tonnes during the month under review, from 461,530 tonnes during January 2021.

The total cement dispatches (domestic and exports) during the first seven months of fiscal year 2022, were 31.4 million tonnes that was 5.89 per cent lower than 33.37 million tonnes during the corresponding period of last fiscal year.

The domestic uptake of the commodity reduced 0.69 per cent to 27.465 million tonnes from 27.657 million tonnes during July-January 2021, and exports during the same period declined 31.04 per cent to 3.94 million tonnes, compared with 5.71 million tonnes during July-January 2021.

The north based mills dispatched 22.87 million tonnes of cement domestically during the first seven months of FY22, recording a decline of 2.85 per cent, compared with 23.54 million tonnes during July-January 2021.

Exports from the north mills declined 61.39 per cent to 557,615 tonnes during July-January 2022, compared with 1.444 million tonnes during the same period last year.

The domestic dispatches by the south based mills during July-January 2022 showed an increase of 11.67 per cent to 4.59 million tonnes, as against 4.115 million tonnes during the same period last fiscal year.

A decline of around 20.78 per cent in exports from the south zone was recorded as the volumes reduced to 3.384 million tonnes during the period under review, compared with 4.272 million tonnes during the corresponding period of last fiscal year.

APCMA Spokesman said that the decline in cement dispatches was affecting the industry which was already under pressure due to the hiked coal prices, high power tariff and transportation cost.

The slowdown in the construction activities for public sector projects amid unfavourable weather conditions was among the major reasons for lower cement consumption.

He said that the decline in the exports should be a matter of concern as it was negatively impacting the inflow of foreign exchange.

“One of the reasons for the declining exports was the shortage of containers and the hike in the container charges from $500 to $1500, making Pakistani cement uncompetitive in the international market,” he added.