LAHORE: Cement intake has registered a decline of over 12 per cent in June 2024, as the total cement dispatches during June 2024 were 3.552 million tonnes as compared to last year's 4.063 million tonnes.
According to data released by the All Pakistan Cement Manufacturers Association, local cement dispatches by the industry during the month of June 2024 were 3.079 million tonnes compared to 3.487 million tons in June 2023, showing a decline of 11.69 per cent. Export dispatches also declined by 17.95 per cent as volumes reduced from 576,309 tonnes in June 2023 to 472,865 tonnes in June 2024.
In June 2024, north-based cement mills dispatched 2.723 million tonnes of cement, showing a decline of 7.71 per cent against 2.950 million tonnes dispatches in June 2023. South-based mills dispatched 829,582 tonnes cement during June 2024, which was 25.47 per cent less compared to the dispatches of 1.113 million tonnes during June 2023.
North-based cement mills dispatched 2.614 million tonnes cement in domestic markets in June 2024, showing a decline of 8.45 per cent against 2.855 million tonnes dispatches in June 2023. South-based mills dispatched 465,578 tonnes cement in local markets during June 2024, which was 26.34 per cent less than the dispatches of 632,093 during June 2023.
A spokesperson for the All-Pakistan Cement Manufacturers Association emphasized that the domestic market is pivotal for the cement industry and the decline in its uptake during the fiscal year ended June 30, 2024 calls for the serious attention of policymakers. He said that the situation calls for lowering duties and taxes on cement, but on the contrary, the government has increased excise duty from Rs2,000 per tonne to Rs4,000 per tonne in the 2024-25 budget, which is likely to dampen the demand further. Cement is not a luxury item but is a basic necessity, and the government must take measures to reduce construction cost to make it affordable for people, he further added.
The data further shows that exports from north-based mills increased by 14.19 per cent as the quantities increased from 95,333 tonnes in June 2023 to 108,861 tonnes in June 2024.
Exports from south reduced by fiscal year ended June 30, 2024, total cement dispatches (domestic and exports) were 45.291 million tonnes -- 1.6 per cent more than the 44.579 million tonnes dispatched during the last fiscal year. Domestic dispatches in this period were 38.181 million tonens against 40.013 million tonnes during last year, showing a reduction of 4.58 per cent.