Cement sales hit by domestic slump,boosted by exports in October

LAHORE: The cement industry saw a sharp decline in domestic sales in October, with total cement dispatches falling 5.78 percent year-on-year to 4.007 million tonnes, industry data showed Friday.

Local cement dispatches by the industry during the month of October 2023 were 3.292 million tonnes, down 15.38 percent from 3.890 million tonnes in October 2022, All Pakistan Cement Manufacturers Association (APCMA) data showed.

However, exports dispatches increased by a massive 97.33 percent, with volumes increasing from 362,350 tonnes in October 2022 to 715,028 tonnes in October 2023.

In October 2023, North-based mills dispatched 2.903 million tonnes of cement, down 11.35 percent from 3.275 million tonnes dispatched in October 2022. South-based mills dispatched 1.104 million tonnes of cement during October 2023, up 12.90 percent from the 0.978 million tonnes dispatched in October 2022.

North-based mills dispatched 2.780 million tonnes of cement in domestic markets in October 2023, down 11.57 percent from the 3.143 million tonnes dispatched in October 2022. South-based mills dispatched 512,320 tonnes of cement in local markets during October 2023, down 31.41 percent from the 746,927 tonnes dispatched in October 2022.

Exports from North-based mills declined by 6.16 percent, with quantities decreasing from 131,111 tonnes in October 2022 to 123,029 tonnes in October 2023. Exports from the South, however, increased by a massive 156.01 percent to 591,999 tonnes in October 2023 from 231,239 tonnes during the same month last year.

During the first four months of the current fiscal year, total cement dispatches (domestic and exports) were 15.892 million tonnes, 14.55 percent more than the 13.874 million tonnes dispatched during the corresponding period of last fiscal year.

Domestic dispatches during this period were 13.426 million tonnes, up 7.47 percent from the 12.492 million tonnes dispatched during the same period last year. Export dispatches also increased by 78.53 percent, with volumes increasing to 2.466 million tonnes during the first four months of the current fiscal year, up from the 1.381 million tonnes exported during the same period of last fiscal year. North-based mills dispatched 11.113 million tonnes of cement domestically during the first four months of the current fiscal year, up 6.83 percent from the 10.402 million tonnes dispatched during July-October 2022. Exports from the North also increased by 31.31 percent to 551,264 tonnes during July-October 2023, up from the 419,823 tonnes exported during the same period last year. Total dispatches by North-based mills increased by 7.78 percent to 11.664 million tonnes during the first four months of the current fiscal year, up from the 10.822 million tonnes dispatched during the same period of last fiscal year.

Domestic dispatches by South-based mills during July-October 2023 were 2.312 million tonnes, up 10.65 percent from the 2.090 million tonnes of cement dispatched during the same period of last fiscal year. Exports from the South also increased by 99.15 percent to 1.915 million tonnes during July-October 2023, up from the 0.962 million tonnes exported during the same period last year. Total dispatches by South-based mills increased by 38.54 percent to 4.227 million tonnes during the first four months of the current fiscal year, up from the 3.051 million tonnes dispatched during the same period of last fiscal year.