LAHORE: Cement intake fell sharply in the first month of fiscal 2022-23 due to political uncertainty and low demand from the construction sector after prolonged wet weather, industry data showed on Tuesday.
All Pakistan Cement Manufacturers Association said the cement dispatches declined by 47.7 percent to 2.039 million tonnes in July 2022 against 3.899 million tonnes in the corresponding month of last fiscal year.
A spokesman of the manufacturers emphasised that massive currency devaluation, political uncertainty and deteriorating economy needs to be addressed by the government to provide a stable environment for industries. “The situation is very alarming and the government must come-up with a solution to bring the country out of this crisis,” the spokesman added.
The local cement dispatches by the industry during the month of July 2022 were 1.88 million tonnes compared to 3.44 million tonnes in July 2021, showing a decline of 45.28 percent. Exports dispatches also suffered a massive decline by 66.09 percent as the volumes reduced from 452,777 tonnes in July 2021 to 153,517 tonnes in July 2022.
In July 2022, North based cement mills dispatched 1.68 million tons cement showing a decline of 44.3 percent against 3.02 million tonnes dispatches in July 2021. South based mills dispatched 352,747 tonnes of cement during July 2022 that was 59.53 percent less compared to the dispatches of 871,601 tonnes during July 2021.
North based cement mills dispatched 1.61 million tonnes of cement in domestic markets showing a decline of 44.11 percent against 2.89 million tonnes dispatches in July 2021. South based mills dispatched 269,477 tonnes cement in local markets during July 2022 that was 51.4 percent less compared to the dispatches of 554,442 tonnes during July 2021.
The exports from North based mills also declined by 48.2 percent as the quantities reduced from 135,618 tonnes in July 2021 to 70,247 tonnes in July 2022. Exports from South also reduced by 73.75 percent to 83,270 tonnes in July 2022 from 317,159 tonnes during the same month last year.
In the last fiscal year, the cement sector growth fell 7.91 percent mainly due to sharp decline in exports and stagnant domestic intake with no major new construction and development activity in the country during the last year.
A huge decline of 43.57 percent was recorded in cement exports, as 5.25 million tonnes were exported compared to 9.31 million tonnes during the last fiscal year.
