Cement dispatches fall 4.2% in December

The cement dispatches declined 4.2 per cent in December 2021 to reach 4.59 million tonnes compared with 4.79 million tonnes in December 2020, data by All Pakistan Cement Manufacturers Association (APCMA) showed.

Local cement dispatches during December 2021 were 4.057 million tonnes compared with 4.159 million tonnes in December 2020, recording a decline of 2.45 per cent, while exports declined 15.61 per cent as the volumes reduced from 637,511 tonnes in December 2020 to 538,002 tonnes in December 2021.

In December 2021, the north based cement mills dispatched 3.377 million tonnes cement in the domestic market, down 2.71 per cent against 3.471 million tonnes during the same month last year.

Likewise, South based mills dispatched 680,126 tonnes of cement in the local market during December 2021 that was 1.15 per cent less compared to 688,056 tonnes during December 2020.

The exports from north based mills declined 77.35 per cent as the volume reduced from 123,089 tonnes in December 2020 to 27,885 tonnes in December 2021.

Exports from the South recorded a decline of 0.84 per cent as it reached 510,117 tonnes in December 2021, compared with 514,422 tonnes during the same month last year.

During the first six months of the current fiscal year, the total cement dispatches (domestic and exports) were 27.456 million tonnes, down 4.12 per cent than 28.637 million tonnes dispatched during the corresponding period of last fiscal year.

Domestic uptake of cement increased 1.91 per cent to 24.065 million tonnes from 23.615 million tonnes during July-December 2020. Exports during the same period declined recorded a massive decline of 32.47 per cent to 3.391 million tonnes from 5.021 million tonnes during July-December 2020.

North based mills dispatched 20.163 million tonnes cement domestically during the first six months of current fiscal year, showing a slight reduction of 0.32 per cent than 20.228 million tonnes during July-December 2020. Exports from north declined 55.08 per cent to 543,888 tonnes during July-December 2021 compared with 1.210 million tonnes exported during the same period last year.

Aggregate dispatches (domestic plus exports) in the north were 20.706 million tonnes, 3.42 per cent lower than 21.439 million tonnes during the corresponding period of last fiscal year.

Domestic dispatches by south based mills during July-December 2021 were 3.902 million tonnes, showing an increase of 15.23 per cent against 3.386 million tonnes during the same period of last fiscal year.

There was, however, a substantial decline of around 25.29 per cent in exports from the south zone as the volume reduced to 2.847 million tonnes in the first six months of the current fiscal year compared with 3.810 million tonnes during the corresponding period of last fiscal year.

The combined dispatches (domestic plus exports) in the south were 6.749 million tonnes, 6.22 per cent lower than 7.197 million tonnes dispatched during the corresponding period of last fiscal year.

APCMA spokesman said that the industry continued facing problems due to currency devaluation, increase in electricity tariffs, coal cost as well as high taxation.

“Cement industry contributes to national exchequer by exporting products without getting any subsidy from the government. It also contributes billions of rupees in form of income tax, sales tax and federal excise duty,” he said.

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