Cement sales up 25 percent, exports down 14pc in January

LAHORE: Cement sales continued to show double-digit growth during January, although its exports couldn’t rebound due to weakening competitiveness in the international market, an industry’s spokesperson said on Tuesday.

Local cement dispatches increased 25 percent to 4 million tons in January compared to 3.2 million tons in the same month a year earlier. Cement exports decreased 14.1 percent from 808,874 tons to 694,934 tons, according to the data released by All Pakistan Cement Manufacturers Association (APCMA).

Overall, monthly cement sales and exports increased 16.3 percent to 4.7 million tons.

The industry’s spokesperson said there has been a downtrend in exports in the last three months as the cement manufacturers are losing competitiveness due to high fuel and energy costs.

APCMA spokesperson said cement uptake has reached historic high in the domestic market, but the increase in its main inputs is the major challenge for the industry.

“Coal rates are constantly going up in the global market and the cement sector is facing major cost increase,” he said. “Moreover, the diesel and petrol prices have increased for the fifth time in the past three months that resulted in an increase in transportation cost.” In January, cement factories based in northern region sold 3.3 million tons of cement in local market, showing 23.5 percent growth from 2.6 million tons a year earlier. South-based mills dispatched 724,281 tons cement for local consumption, which was 24.5 percent higher than 581,316 tons. Cement exports from north increased 25.3 percent to 233,404 tons in January from 186,185 tons a year ago. Exports from south decreased 25.8 percent to 461,530 tons from 622,689 tons.

In the first seven months of this fiscal year, total cement dispatches (domestic and exports) were 33.3 million tons. That was 15.7 percent higher than the cement dispatches during the corresponding period of last fiscal year. Local cement sales increased 16.9 percent in the July-January period to 27.6 million tons. That was compared with 23.6 million tons in the corresponding period a year earlier. Cement exports increased from 5.1 million tons to 5.7 million tons, showing a growth of 10.2 percent.

North-based mills dispatched 23.5 million tons cement for domestic consumption in the seven months. That was 17.1 percent higher compared to the dispatches of 20.1 million tons during the same period last fiscal year. Cement exports from north were 1.4 million tons, down 10.1 percent from 1.6 million tons. The south-based cement makers dispatched 4.1 million tons in the domestic market during the first seven months of current fiscal year. That was 15.8 percent higher than 3.5 million tons dispatched during the corresponding period of last fiscal year. Exports from south were 4.2 million tons, registering an increase of 19.3 percent over exports of 3.5 million tons during the same period last year.