Cement sales surge 15.6 percent in July-Jan

LAHORE: Cement dispatches increased 6.38 percent to 21.3 million tons during the first seven months of the current fiscal year because of a rise in local sales; although exports fell in this period. 

All Pakistan Cement Manufacturers Association (APCMA) data, released on Thursday, showed that total cement dispatches stood at 20.022 million tons in the corresponding period last fiscal year. 

The data showed that local cement sales surged 15.57 percent to 17.9 million tons in July-Jan 2015/16. However, cement exports slid 24.98 percent to 3.4 million tons.

Cement manufacturers expressed dismay over the indifference shown by the economic planners towards rapidly declining exports.

“Substantial reduction in exports has drastically affected foreign exchange earnings of the country and cement makers are finding it difficult to maintain their existence in the export markets due to high cost of doing business in Pakistan and non-availability of incentives,” said APCMA spokesman. 

In July-Jan 2015/16, factories located in north dispatched 14.776 million tons in local markets as against 12.948 million tons in July-Jan 2014/15.

The south-based factories registered a 23 percent growth in domestic sales in the period under review as their local sales stood at 3.12 million tons as against 2.53 million tons earlier. 

The north-based mills registered a 22.35 percent decline of exports to 2.16 million tons in the first seven months of this fiscal year. South-based cement manufacturers recorded 29.17 percent exports fall to 1.243 million tons.

The industry dispatched 3.085 million tons of cement in January compared with 2.898 million tons dispatched in the same month a year ago, showing a growth of 6.47 percent.

Again this was mainly attributed to healthy domestic sales. In January, the local sales were 2.699 million tons as against 2.419 million tons earlier, up 11.54 percent. 

In January, exports dropped to 386,562 tons from 478,000 tons in the same month a year ago, showing a decline of 19.19 percent.

The APCMA spokesman said despite several reminders on significant issues, which have been eroding export volumes, apparently no interest has been shown by the government to address them. 

“Government must take immediate steps to stop smuggling of Iranian cement into the country,” he added.

He further said the government should also give due attention to reduce energy costs by removal of gas infrastructure development cess, reduction of custom duty on coal to zero percent and announcing additional incentive of five percent on cement export by sea in order to reduce the overall cost of operations to make the Pakistani cement industry competitive globally.