LAHORE: Cement despatches declined by 3.96 percent in September, as domestic demand slowed down amid rising costs and power tariffs, data from the All Pakistan Cement Manufacturers Association (APCMA) showed on Tuesday.
Total cement despatches during September 2023 were 4.115 million tonnes, down from 4.284 million tonnes in the same month of the previous fiscal year, the APCMA said in a statement.
Local cement despatches by the industry fell by 6.87 percent to 3.544 million tonnes in September 2023, compared to 3.806 million tonnes in September 2022, while export despatches increased by 19.24 percent to 570,101 tonnes, up from 478,097 tonnes a year ago.
A spokesman for the APCMA said that the industry has immense potential to capture export markets, provided the government provides relief on duties and taxes to reduce production costs and make the product more competitive in international markets.
"Coal is a major cost element, and the current import duty of 5 percent should be abolished," the spokesman said, while expressing concern about the rising power tariff and petroleum prices.
The APCMA data showed the North-based cement mills saw a decline of 7.00 percent in their total despatches to 3.035 million tonnes in September 2023, from 3.264 million tonnes in September 2022.
The South-based mills recorded a growth of 5.79 percent in their total despatches to 1.079 million tonnes in September 2023, from 1.020 million tonnes in September 2022.
North-based cement mills despatched 2.893 million tonnes cement in domestic markets in September 2023 showing a decline of 7.79 percent against 3.137 million tonnes despatches in September 2022. South-based mills despatched 651,287 tonnes cement in local markets during September 2023 that was 2.58 percent less compared to the despatches of 668,512 tonnes during September 2022.
Exports from North-based mills increased by 12.43 percent, from 126,502 tonnes in September 2022 to 142,226 tonnes in September 2023. Exports from South also increased by 21.70 percent, from 351,595 tonnes in September 2022 to 427,875 tonnes in September 2023.
During the first quarter of the current fiscal year, total cement despatches (domestic and exports) were 11.873 million tonnes, which is 23.40 percent higher than the 9.621 million tonnes despatched during the corresponding period of the last fiscal year.
Domestic despatches during this period were 10.122 million tonnes, compared to 8.602 million tonnes during the same period last year, representing an increase of 17.67 percent. Export despatches were also 71.79 percent higher, with volumes increasing to 1.751 million tonnes during the first three months of the current fiscal year, compared to 1.019 million tonnes exported during the same period last year.
North-based mills despatched 8.333 million tonnes of cement domestically during the first quarter of the current fiscal year, an increase of 14.80 percent from the 7.259 million tons despatched during the first quarter of the last fiscal year.
Exports from North also increased by 48.33 percent, to 428,235 tonnes during July-September 2023, compared to 288,712 tonnes exported during the same period last year. Total despatches by North-based mills increased by 16.08 percent, to 8.762 million tonnes during the first three months of the current financial year, from 7.548 million tonnes during the same period of the last financial year.
Domestic despatches by South-based mills during July-September 2023 were 1.789 million tonnes, representing an increase of 33.18 percent over the 1.343 million tons despatched during the same period of the last fiscal year.
Exports from South also increased by 81.07 percent, to 1.322 million tonnes during July-September 2023, compared to 0.730 million tonnes exported during the same period last year. Total despatches by South-based mills increased by 50.05 percent, to 3.111 million tonnes during the first three months of the current financial year, from 2.073 million tonnes during the same period of the last financial year.