Cement sales down 16.7pc, exports up 5pc in March

LAHORE: Cement sales sharply fell 16.8 percent year-on-year in March as construction activities were seen declining during the last month, while its exports rose around five percent with an expected contraction in months ahead amid the coronavirus-induced slowdown worldwide, industry’s data showed on Friday.

All Pakistan Cement Manufacturers Association (APCMA) logged 3.2 million tons of cement sold in the local market in March compared to 3.9 million tons in the corresponding month a year earlier. Cement exports rose to 0.507 million tons from 0.482 million tons. Overall, cement dispatches dropped 14.3 percent to 3.7 million tons in March.

Slower growth pace of cement exports could be attributed to loss of Indian market. Exports to India remained zero so far during the current fiscal year, while Pakistan exported 0.716 million tons of cement to India a year earlier.

In March, north-based mills dispatched 2.7 million tons locally, 10.5 percent lower than the dispatches a year earlier. Exports from the northern mills also decreased 18.9 percent year-on-year to 0.107 million tons in March.

Southern region of the country reported a decline of 40.9 percent in domestic cement sales. South-based mills sold 0.464 million tons in local markets in March 2020 compared to 0.787 million tons in March 2019.

Their exports, however, rose 14.3 percent year-on-year to 0.401 million tons last month. Cement industry officials said economic activities would remain further subdued in the wake of the lockdown extended till April 14. The industry was hoping to get some relief package from the government as managing business is becoming extremely difficult with each passing day, they said.

The officials said Prime Minister’s incentive package for the construction industry would help in increasing cement consumption in the country. Cement industry was expecting reduction in federal excise duty, which was ‘very high’ in the region.

Moreover, industry officials said the additional government levies slapped on the industry this year and electricity tariffs should be reduced.

APCMA data showed that overall the industry managed to dispatch 37.035 million tons of cement in the first nine months of the current fiscal year. The volume was 7.1 percent higher than 34.593 million tons of the commodity dispatched during the corresponding period a year earlier.

The domestic consumption, during the July-March period, stood at a little over 30 million tons, while exports were recorded at 6.5 million tons. Domestic cement sales increased 3.82 percent and exports rose 25.63 percent during the nine-month period.