Rapid construction activities push cement sales up 44.39pc in March

LAHORE: The cement sector posted the highest ever monthly growth of 44.39 percent in March 2021 following massive increase in domestic consumption owing to construction activities in the country, manufacturers' data showed on Friday

According to the data released by All Pakistan Cement Manufacturers Association (APCMA), cement exports also contributed in this growth. The total cement dispatches during March 2021 were 5.373 million tons against 3.722 million tons dispatched during the same month of last fiscal year.

A spokesman of the APCMA however said the growth was accompanied with some worrisome signs as the rates of power and coal were increasing consistently. Cement being an energy intensive product, the industry was finding it hard to operate due to continuous rise in major input cost elements. “The industry is not demanding any special favour but wants to be treated at par with five exporting sectors and import levies on coal have to be rationalised as it is the main input of the cement sector,” he added.

Local cement dispatches in the month of March 2021 were 4.563 million tons showing an increase of 41.96 percent compared to 3.214 million tons in March 2020. Exports also increased significantly by 59.80 percent, from 507,480 tons in March 2020 to 810,962 tons in March 2021. During March 2021, the cement manufacturers in the northern region dispatched 3.809 million tons to local markets against 2.749 million tons in the same month last year, registering an increase of 38.52 percent.

South-based cement makers dispatched 753,704 tons in the domestic markets, which was 62.28 percent higher than 464,440 tons cement dispatched in March 2020. Exports from up north registered an enormous increase of 162.58 percent as the volumes increased from 106,759 tons in March 2020 to 280,330 tons in March 2021. Exports from the southern region increased by 32.42 percent to 530,632 tons in March 2021 compared to 400,721 tons during the same month last year. As per the nine-month data of this fiscal year, total cement dispatches (domestic and exports) were 43.325 million tons that was 16.99 percent higher than 37.035 million tons of cement dispatched during the corresponding period of last fiscal year. From July 2020 to March 2021, local dispatches increased by 18.29 percent to 36.182 million tons from 30.588 million tons during July 2019 to March 2020. Exports increased 10.8 percent to 7.144 million tons during July-March FY21 compared with the same period last fiscal. In July-March, north-based cement manufacturers sold 30.629 million tons to domestic consumers, up 17.75 percent compared to sales of 26.012 million tons during the same period last fiscal. Exports from north were 1.911 million tons showing a decline of 0.22 percent over exports of 1.915 million tons during the same period last fiscal year. Southern cement makers sold 5.552 million tons to the domestic market during the period under review, up 21.36 percent from 4.575 million tons dispatched during the corresponding period of last fiscal year. Exports stood at 5.232 million tons up 15.46 percent over 4.531 million tons during July-March FY20.