Cement sector sales up 33.91pc to 4.489mln tons in February

LAHORE: Cement sector sales increased 33.91 percent to 4.489 million tons in February 2020 compared to the corresponding period last year; though idle capacities of 9.1 million tons continued to haunt manufacturers.

According to the data released by All Pakistan Cement Manufacturers Association (APCMA), domestic consumption increased by 31.35 percent to 3.736 million tons in February 2020 from 2.843 million tons in February 2019. Exports registered an impressive increase of 48.20 percent to 0.753 million tons in February 2020 from 0.508 million tons in February 2019.

Mills based in the northern part of the country sold 3.173 million tons locally, which was almost 46 percent higher than the dispatches of 2.175 million tons during the corresponding month of last fiscal. As per recent trends, exports from the north also increased in February 2020 by 23 percent to 0.202 million tons, from 0.165 million tons in February 2019.

Southern region of the country reported a decline in domestic consumption by 16 percent, as it fell to 0.562 million tons in February 2020 from 0.669 million tons in February 2019.

Exports however surged by a whopping 60 percent to 0.551 million tons last month, as compared to 0.343 million tons in February 2019.

Cement dispatches in the first eight months of this fiscal stood at 33.313 million tons depicting a growth of over 10 percent when compared with total dispatches of 30.253 million tons during the corresponding period of last fiscal.

Exports declined nominally in the north to 1.808 million tons during the first eight months of the current fiscal from 1.857 million tons in corresponding period this fiscal.

However, the exports from the south zone jumped to 4.131 million tons during July-February 2019-20 from 2.792 million tons in July-February 2018-19 depicting a huge increase of 47.94 percent. Another point worth noting is that exports from the south zone exceeded domestic consumption in the region during the first eight months of this fiscal, likely due to rupee devaluation.

However, due to lower demand in Afghanistan and zero exports to India through the Wagah border, exports from north remained subdued.

APCMA spokesperson said cement production capacity has increased to 64 million tons for the financial year 2019-20 and the industry has been able to utilise only 78.53 percent of its current installed capacity so far this year, with over 9.1 million tons idle capacity.

He appealed to the government to support the industry by minimising duties and taxes on cement in order to maintain the momentum of increase cement consumption.

“The lopsided performance in domestic consumption in northern and southern parts of the country is worrisome as it depicts that the economic activities in different regions of the country is uneven.”

He urged the government to focus on Public Sector Development Projects and announce housing schemes to boost construction activities, to protect employment and investment in the cement and allied industries.