Cement consumption declines 7.10pc in Feb

LAHORE: After a slight increase last month, cement consumption slumped by 7.10 percent in February 2023 with total dispatches clocking in at 4.040 million tonnes against 4.348 million tonnes dispatched during the same month last fiscal.

According to the data released by All Pakistan Cement Manufacturers Association, local cement dispatches by the industry during February 2023 were 3.590 million tonnes compared to 3.943 million tonnes in February 2022, showing a decline of 8.96 percent. Exports increased by 10.96 percent as the volumes went up from 405,489 tonnes in February 2022 to 449,940 tonnes in February 2023.

In February 2023, north-based cement mills dispatched 3.014 million tonnes, down 7.42 percent against 3.255 million tonnes in February 2022. South-based mills dispatched 1.025 million tonnes during February 2023, 6.13 percent less than 1.093 million tonnes during February 2022.

In the domestic market, north-based cement units sold 2.949 million tonnes in February 2023, down 8.26 percent against 3.215 million tonnes in February 2022. Units down south sold 640,645 tonnes cement, down 12.04 percent from 728,302 during February 2022.

Exports from the north-based units went up 58.22 percent as quantities increased from 40,902 tonnes in February 2022 to 64,717 tonnes in February 2023. Exports from the south also increased 5.66 percent to 385,223 tonnes in February 2023 from 364,587 tonnes during the same month last year.

During the first eight months of the current fiscal year, total cement dispatches (domestic and exports) were 29.81 million tonnes, down 16.65 percent from 35.763 million tonnes during the corresponding period last fiscal.

Domestic dispatches during this period were 27.207 million tonnes against 31.416 million tonnes during the same period last year, showing a reduction of 13.39 percent. Exports were also 40.15 percent less as the volumes reduced to 2.602 million tonnes during the first eight months of the current fiscal, compared to 4.348 million tonnes exported during the same period last fiscal.

Domestically, cement factories up north sold 22.327 million tonnes during the first eight months of the current fiscal year, down 14.42 percent from 26.089 million tonnes during July 2021 - February 2022. Exports from the north increased 13.21 percent to 678,006 tonnes during July-February compared with 598,897 tonnes during the same period last fiscal.

Total dispatches by the north-based units went down 13.80 percent to 23.005 million tonnes during July-February of the current fiscal, from 26.688 million tonnes during the same period last fiscal.

Domestic dispatches by the units down south were 4.880 million tonnes during 8MFY23, down 8.38 percent over 5.327 million tonnes during the same period last fiscal. Exports from the south declined 48.67 percent to 1.924 million tonnes during 8MFY23 compared with 3.749 million tonnes exported during the same period last fiscal. Total dispatches by the south-based units reduced by 25.03 percent to 6.804 million tonnes during 8MFY23 from 9.076 million tonnes during same period last fiscal.

A spokesman of All Pakistan Cement Manufacturers Association emphasised that the economic situation in the country was becoming more and more complicated with each passing day. “We are facing serious operational problems. We need timely supply of spare parts and consumable items to ensure stable operation of our plants and we urge the government to come-up with practically applicable and industry friendly policies in order to enable the industry to come out of this difficult situation,” he added.