Cement despatches declined 7.91pc during FY22

APCMA attributes slow down to uncertainty in policies even though previous govt had announced incentives for construction industry

ISLAMABAD: Total cement despatches including domestic and exports during the fiscal year 2021-22 (FY22) clocked in at 52.89 million tons which is 7.91 percent lower than 57.43 million tons despatched during FY21, Profit learnt on Monday.

According to details, domestic uptake during the last financial year reduced by 1 percent to 47.63 million tons as compared to 48.11 million tons registered during the fiscal year ending June 21, whereas exports during the same period declined by a massive 43.57 percent to 5.25 million tons from 9.31 million tons during July 2020 to June 2021.

According to the data released by All Pakistan Cement Manufacturers Association (APCMA), cement despatches increased by 1.01 percent in June 2022. Total Cement despatches during June 2022 were 5.26 million tons against 5.21 million tons despatched during the same month of last fiscal year.

As per the association, the decline in cement dispatches despite incentives announced for the construction industry by the previous government was because of uncertainty in government policies.

Local cement despatches by the industry during June 2022 were 4.97 million tons compared to 4.66 million tons in June 2021, showing an increase of 6.66 percent.

On the other hand, exports despatches suffered decline by 47.57 percent as the volumes reduced from 542,622 tons in June 2021 to 284,471 tons in June 2022.

In June 2022, North based cement mills despatched 4.12 million tons cement in domestic markets showing an increase of 6.8 percent against 3.85 million tons despatches in June 2021. South based mills despatched 856,863 tons cement in local markets during June 2022 that was 5.98 percent higher compared to the despatches of 808,490 tons during June 2021.

Exports from North based mills massively declined by 51.79 percent as the quantities reduced from 201,540 tons in June 2021 to 97,163 tons in June 2022. Exports from South also reduced by 45.08 percent to 187,308 tons in June 2022 from 341,082 tons during the same month last year.

North based Mills despatched 39.44 million tons cement domestically during the fiscal year July 21 – June 22 showing a reduction of 2.81 percent than cement despatches of 40.58 million tons during July 20 -June 21. Exports from North declined by 64.52 percent to 910,685 tons during July 21 – June 22 compared with 2.56 million tons exported during last fiscal year.

Domestic despatches by South based Mills during July 21 – June 22 were 8.19 million tons showing an increase of 8.74 percent over 7.53 million tons of cement despatched during the same period of last fiscal year. There was however a substantial decline of around 35.6 percent in exports from the south zone as the volumes reduced to 4.34 million tons in the fiscal year July 21 – June 22 from 6.74 million tons during last fiscal year.

According to APCMA, the industry is going through difficult times due to the historical high prices of fuel, electricity, coal and other raw materials. Due to the high cost of production, the prices of cement will continue to increase in the local market while export has already declined massively due to high cost of production.

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Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]


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