Cement sector continues to shine as despatches hit record 5.73m tonnes in Oct

LAHORE: Pakistan’s cement sector continued with its upward trend in Oct 2020, as total desptaches during the month surged to record 5.735 million tonnes, as compared to 5.213 million tonnes (also a record) in Sept 2020.

The local uptake of cement increased by 15.83pc to 4.859 million tonnes in October 2020, as compared to 4.195 million tonnes in October 2019, whereas exports registered an increase of 11.58pc, from 784,433 tonnes in Oct last year to 875,266 tonnes in Oct 2020.

In the northern region, domestic cement despatches increased 15.53pc to 4.165 million tonnes in Oct 2020 from 3.605 million tonnes in October 2019. Exports from the region also rose by 8.54pc to 0.283 million tonnes from 0.261 million tonnes in Oct 2019.

Meanwhile, domestic cement despatches in the southern region increased by 17.70pc to 695,221 tonnes from 590,690 tonnes in Oct last year. Exports from the south also continued with the growth momentum, rising 13.09pc to 591,877 tonnes in Oct 2020 from 523,353 tonnes in the same of last year.

On a cumulative basis, total cement despatches during the first four months (July-Oct) of the current fiscal year (FY21) increased by 19.89pc to 19.321 million tonnes from 16.116 million tonnes in July-Oct 2019.

During the period under review, domestic despatches registered a healthy increase of 17.94pc, from 13.315 million tonnes to 15.704 million tonnes, whereas exports surged by 29.15pc, from 2.8 million tonnes to 3.617 million tonnes.

In the southern region, domestic growth remained healthy at 12.08pc, as consumption increased from 1.860 million tonnes last year to 2.085 million tonnes in 4MFY21. Exports from the south posted a growth of 46.56pc during the period under review, from 1.85 million tonnes in Jul-Oct FY20 to 2.712 million tonnes.

According to the All Pakistan Cement Manufacturers Association spokesperson, cement consumption could increase further if the government rationalizes duties and taxes and withdraw excise duty.

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