Cement exports jump 155pc, domestic sales fall 4pc in Dec

LAHORE: Cement exports soared by more than 155 percent in December, the third consecutive month of growth, but domestic consumption fell by nearly 4 percent, data from the industry body showed on Tuesday.

The All Pakistan Cement Manufacturers Association (APCMA) said total cement dispatches in December 2023 rose by 4.63 percent year-on-year to 4.06 million tonnes, driven by a surge in overseas demand.

However, local dispatches dropped by 3.81 percent to 3.536 million tonnes from 3.676 million tonnes in December 2022, reflecting a slowdown in construction activity in the country.

The exports dispatches increased by massive 155.85 percent as the volumes jumped to 524,656 tonnes in December 2023 from 205,061 tonnes in December 2022.

The north based cement mills dispatched 3.012 million tonnes cement in December 2023 against 3.01 million tonnes dispatches in December 2022 showing almost flat growth. On the contrary, south based mills dispatched 1.048 million tonnes cement during December 2023 that was 20.50 percent higher compared to the dispatches of 0.87 million tonnes during December 2022.

North based cement mills dispatched 2.936 million tonnes cement in domestic markets in December 2023 showing a decline of 0.69 percent against 2.956 million tonnes dispatches in December 2022. South based mills dispatched 600,073 tonnes cement in local markets during December 2023 that was 16.62 percent less compared to the dispatches of 719,721 tonnes during December 2022.

Exports from north based mills increased by 39.58 percent as the quantities increased from 54,427 tonnes in December 2022 to 75,967 tonnes in December 2023. Exports from south also increased by massive 197.87 percent to 448,689 tonnes in December 2023 from 150,634 tonnes during the same month last year.

During the first six months of current fiscal year, total cement dispatches (domestic and exports) were 23.876 million tonnes that is 9.71 percent higher than 21.764 million tonnes dispatched during the corresponding period of last fiscal year.

Domestic dispatches during the period were 20.223 million tonnes against 20.030 million tonnes during same period last year showing an increase of 0.97 percent. Export dispatches were substantially higher by 110.66 percent as the volumes increased to 3.653 million tonnes during the first six months of current fiscal year compared to 1.734 million tonnes exports done during same period of last fiscal year. North based Mills dispatched 16.772 million tonnes cement domestically during the first six months of current fiscal year showing an increase of 1.52 percent from dispatches of 16.522 million tonnes during July to December 2022. Exports from north increased by 33.40 percent to 771,173 tonnes during July to December 2023 compared with 578,074 tonnes exported during the same period last year.

Total dispatches by north-based Mills increased by 2.59 percent to 17.543 million tonnes during the first six months of the current financial year from 17.1 million tonnes during the same period of last fiscal year.

Domestic dispatches by south-based mills during July to December 2023 were 3.451 million tonnes showing reduction of 1.62 percent over 3.508 million tonnes cement dispatched during the same period of last fiscal year.

Exports from south however substantially increased by 149.29 percent to 2.882 million tonnes during July to December 2023 compared with 1.156 million tonnes exported during the same period of last year.

Total dispatches by south-based mills increased by 35.79 percent to 6.333 million tonnes during the first six months of current fiscal year from 4.664 million tonnes during the same period of last fiscal year.

A spokesman of APCMA expressed serious concerns over the negative growth in domestic dispatches since last four months.

"We are very hopeful that the government will speed up PSDP projects in order to increase cement demand and also give attention to our operational problems," the spokesman said. "Two major issues currently being faced by the cement industry are related to new Axle Load regime and Track and Trace system. We have approached the concerned functionaries and expect to get positive response."