Cement sales hit by construction slowdown

LAHORE: Cement sales declined 24.19 percent in March on account of political instability that has constricted construction activities, whereas exports of the material increased sharply after a long break.

All Pakistan Cement Manufacturers Association (APCMA) data on Monday showed that March 2023 dispatches of cement dropped 24.19 percent to 3.795 million tonnes against 5.006 million tonnes dispatched during the same month of the last fiscal.

Domestically, the industry sold 3.356 million tonnes in March 2023 compared to 4.710 million tonnes sold in March 2022, down 28.75 percent. Exports increased by 48.46 percent during the month, as volumes increased from 295,321 tonnes in March 2022 to 438,433 tonnes in March 2023.

Of this, industry in the northern region sold 2.82 million tonnes cement, down 28.22 percent against 3.929 million tonnes in March 2022. South-based factories sold 974,467 tonnes cement, 9.48 percent less than 1.076 million tonnes during March 2022.

In the domestic market, north-based cement manufacturers dispatched 2.72 million tonnes in March 2023; 29.33 percent less than 3.849 million tonnes sold in March 2022. South-based units dispatched 636,465 tonnes; 26.14 percent less compared to the dispatches of 861,742 during March 2022.

Exports from factories up north increased by 24.63 percent, as volumes increased from 80,584 tonnes in March 2022 to 100,431 tonnes in March 2023. Exports from the south also increased by 57.40 percent to 338,002 tonnes in March 2023 from 214,737 tonnes during the same month last year.

A spokesman of the APCMA said that construction activities in both the northern and southern regions of the country have been declining significantly over the last many months. The situation was alarming for the country, he said, adding that employment opportunities for skilled and unskilled labour attached to the construction sector were also on a declining trend. “Continued political instability, currency devaluation and poor economic conditions are badly affecting all the industrial sectors including the cement industry, he added.

APCMA data of the first nine months of the current fiscal showed that total cement dispatches (domestic and exports) were 33.6 million tonnes. This was down 17.59 percent from 40.769 million tonnes dispatched during the corresponding period of last fiscal.

Domestic dispatches during this period were 30.564 million tonnes against 36.126 million tonnes during the same period last year, showing a decline of 15.40 percent. Export dispatches were also 34.62 percent less, as volumes reduced to 3.036 million tonnes during 9MFY2023 compared to 4.643 million tonnes during the same period last fiscal.

Similarly, sales of factories in the northern regions dropped 16.33 percent to 25.047 million tonnes during 9MFY2023 from 29.937 million tonnes during July-March 2022. However, exports from the region went up 14.56 percent to 778,437 tonnes during July-March 2023 compared with 679,481 tonnes exported during the same period last year. Total sales of the northern units declined by 15.65 percent to 25.826 million tonnes during 9MFY2023 from 30.617 million tonnes during the same period last fiscal.

In the July-March 2023 period, south-based factories sold 5.517 million tonnes domestically, showing a reduction of 10.86 percent over 6.189 million tonnes dispatched during the same period last fiscal. Exports from the south declined by 43.05 percent to 2.257 tonnes during July-March 2023 compared with 3.964 million tonnes exported during the same period last year. Total dispatches by the south-based cement factories dropped by 23.43 percent to 7.774 million tonnes during 9MFY2023 from 10.152 million tonnes during the same period last fiscal.