LAHORE: Due to a slowdown in economic and construction activities, domestic cement intake in Pakistan has fallen to levels not seen since 2017, with local demand decreasing by 18 per cent in September 2024.
According to data released by the All Pakistan Cement Manufacturers Association, overall cement dispatches declined by 5.63 per cent in September 2024. Total cement dispatches during the month were 3.54 million tonnes, compared to 3.751 million tonnes during the same period last year.
Local cement dispatches by the industry in September 2024 were 2.65 million tons, down from 3.233 million tonnes in September 2023, reflecting an 18.02 per cent decline. On the export side, dispatches saw a substantial increase of 71.52 per cent, rising from 570,692 tonnes in September 2023 to 978,871 tonnes in September 2024.
The All Pakistan Cement Manufacturers Association spokesperson said that this marks the fourth consecutive month of declining cement dispatches. He attributed the downturn to increased cement prices caused by irrational taxation, coupled with low demand. He expressed disappointment at this trend, warning that the industry is on the brink of a crisis due to declining capacity utilization.
North-based cement mills dispatched 2.407 million tonnes of cement in September 2024, a decline of 12.78 per cent compared to 2.759 million tonnes in September 2023. In contrast, south-based mills dispatched 1.246 million tonnes during the same month, marking a 14.23 per cent increase from 0.992 million tonnes in September 2023.
North-based mills dispatched 2.222 million tonnes of cement to domestic markets in September 2024, a decrease of 15.51 per cent from 2.630 million tonnes in September 2023. Meanwhile, south-based mills dispatched 470,931 tonnes to local markets in September 2024, down 28.95 per cent from 662,786 tonnes in September 2023.
Exports from north-based mills increased by 42.93 per cent, with quantities rising from 142,226 tonnes in September 2023 to 203,280 tonnes in September 2024. Exports from south-based mills also saw a significant increase, rising by 81.02 per cent to 775,591 tonnes in September 2024, up from 428,466 tonnes during the same month last year.