Cement despatches declined 6.25pc in March 2022

Following the unprecedented increase in the cost of construction materials especially steel and cement, the cement despatches in the country continued declining.

Cement despatches declined by 6.25 per cent in March 2022 as the total despatches during March 2022 were 5.04 million tons against 5.37 million tons despatched during the same month of last fiscal year.

According to the data released by All Pakistan Cement Manufacturers Association (APCMA), local cement shipments by the industry during the month of March 2022 were 4.74 million tons compared to 4.56 million tons in March 2021, showing an increase of 4.02 per cent. Exports despatches suffered a massive decline by 63.77 per cent as the volumes reduced from 815,120 tons in March 2021 to 295,321 tons in March 2022.

In March 2022, north based cement mills despatched 3.85 million tons cement in domestic markets showing an increase of 1.07 per cent against 3.8 million tons despatches in March 2021. South based mills despatched 897,697 tons cement in local markets during March 2022 that was 18.94 per cent higher compared to the despatches of 754,741 tons during March 2021.

Exports from north based mills massively declined by 71.26 per cent as the quantities reduced from 280,411 tons in March 2021 to 80,584 tons in March 2022. Exports from south also reduced by 59.84 per cent to 214,737 tons in March 2022 from 534,709 tons during the same month last year.

During the first nine months of the current fiscal year, total cement despatches (domestic and exports) were 40.81 million tons, which calculates to 5.81 per cent lower than 43.33 million tons despatched during the corresponding period of last fiscal year. 

Further analysis indicate that domestic uptake of the commodity reduced by 0.03 per cent to 36.17 million tons from 36.18 million tons during July-March 2021 whereas exports during the same period declined by a massive 35.04 per cent to 4.64 million tons from 7.14 million tons during July-March 2021.

In a statement All Pakistan Cement Manufacturers Association said that steep decline in cement exports is hurting not only the cement manufacturers but the government’s revenue collection and foreign exchange as well. There is an immense need to formulate industry friendly policies to catch-up our cement sales in international markets as well as to increase indigenous consumption of the commodity.