Cement dispatches decline 25.68pc in August

LAHORE: Cement dispatches declined by 25.68 per cent in August 2024, with total dispatches reaching 3.37 million tonnes compared to 4.53 million tonnes in the same month of the previous fiscal year.

According to data released by the All Pakistan Cement Manufacturers Association, local cement dispatches for August 2024 were 2.75 million tonnes, down from 3.8 million tonnes in August 2023, reflecting a decline of 27.54 per cent. Export dispatches also fell by 16 per cent, with volumes decreasing from 730,755 tonnes in August 2023 to 613,857 tonnes in August 2024.

In August 2024, cement mills based in the north dispatched 2.530 million tonnes, a decrease of 22.2 per cent from 3.25 million tonnes in August 2023. South-based mills dispatched 835,245 tonnes of cement during August 2024, which is 34.54 per cent less compared to the 1.276 million tonnes dispatched in August 2023.

North-based mills dispatched 2.325 million tonnes of cement to domestic markets in August 2024, a decline of 24.7 per cent compared to 3.09 million tonnes in August 2023. South-based mills dispatched 426,289 tonnes of cement locally in August 2024, a 39.91 per cent decrease from 709,443 tonnes in August 2023.

Exports from north-based mills increased by 24.79 per cent, rising from 164,195 tonnes in August 2023 to 204,901 tonnes in August 2024. However, exports from south-based mills decreased by 27.82 per cent, falling to 408,956 tonnes in August 2024 from 566,560 tonnes in the same month last year.

During the first two months of the current fiscal year, total cement dispatches (domestic and exports) were 6.38 million tonnes, a 17.82 per cent decrease from 7.758 million tonnes dispatched during the same period last fiscal year. Domestic dispatches during this period were 5.21 million tonnes, compared to 6.58 million tonnes during the same period last year, showing a reduction of 20.73 per cent.

Export dispatches also fell by 1.65 per cent, with volumes decreasing to 1.16 million tonnes in the first two months of the current fiscal year from 1.18 million tonnes in the same period of the previous fiscal year.

North-based mills dispatched 4.418 million tonnes of cement domestically during the first two months of the current fiscal year, an 18.78 per cent decrease from 5.44 million tonnes during July-August 2023. Exports from north-based mills increased by 6.23 per cent to 303,821 tonnes during July-August 2024, compared with 286,009 tonnes exported during the same period last year.

Total dispatches by north-based mills decreased by 17.53 per cent to 4.722 million tonnes during the first two months of the current fiscal year, down from 5.726 million tonnes during the same period last fiscal year.

Domestic dispatches by south-based mills during July-August 2024 were 795,846 tonnes, a reduction of 30.02 per cent compared to 1.137 million tonnes dispatched during the same period of the previous fiscal year. Exports from south-based mills also declined by 4.17 per cent, totalling 857,198 tonnes during July-August 2024, compared with 894,537 tonnes exported during the same period last year. Total dispatches by south-based mills decreased by 18.64 per cent to 1.653 million tonnes during the first two months of the current fiscal year, down from 2.032 million tonnes during the same period last fiscal year.

A spokesperson for the All Pakistan Cement Manufacturers Association mentioned that the domestic market has shown a negative trend for the past 12 months as the industry struggles with higher taxes and economic uncertainty. Heavy monsoon rains also impacted construction activities last month.