ISLAMABAD: Cement sales in August declined by 23.98% as construction activities slowed down following the hike in energy, fuel and transportation costs.
According to the details, total cement despatches during August 2022 were 3.296 million tonnes against 4.336 million tonnes despatches during the same month of last fiscal year, data released by the All Pakistan Cement Manufacturers Association (APCMA) on Friday showed.
As per the cement manufacturers, the massive reduction in cement demand was due to economic instability, day by day increasing energy costs coupled with the currency devaluation, which are having serious implications on the industry.
Officials of the association are of the view that the government needed to make a viable policy for the construction industry keeping in view the huge damages to infrastructure of the country after massive flood. The floods, that have hit major parts of the country, are yet another challenge for the government as restoration of damaged infrastructure and rehabilitation of masses need to be addressed on top priority to bring the country out of the difficult situation.
According to the data, local cement shipments by the industry during the month of August 2022 were 2.90 million tonnes compared to 3.81 million tons in August 2021, showing a decline of 23.75%. Exports despatches also declined by 25.70% as the volumes reduced from 521,468 tonnes in August 2021 to 387,440 tonnes in August 2022.
In August 2022, North based cement mills despatches 2.59 million tonnes cement showing a decline of 20.93 percent against 3.28 million tons despatches in August 2021. South based mills despatches 700,436 tonnes cement during August 2022 that was 33.50% less compared to the despatches of 1.05 million tonnes during August 2021.
North based cement mills despatched 2.50 million tonnes cement in domestic markets in August 2022 showing a decline of 20.29% against 3.14 million tonnes despatches in August 2021. South based mills despatched 404,959 tonnes of cement in local markets during August 2022 that was 39.88% less compared to the despatches of 673,572 tonnes during August 2021.
Exports from North-based mills also declined by 35.15% as the quantities reduced from 141,804 tonnes in August 2021 to 91,963 tonnes in August 2022. Exports from South also reduced by 22.17% to 295,477 tonnes in August 2022 from 379,664 tonnes during the same month last year.
During the first two months of the current fiscal year (2MFY23), total cement despatches were 5.336 million tons that is 35.20 percent lower than 8.235 million tonnes despatched during the corresponding period of last fiscal year. Domestic shipments during this period were 4.795 million tonnes against 7.261 million tonnes during the same period last year showing a reduction of 33.95%. Export despatches were also 44.47% less as the volumes reduced to 540,957 tonnes during the 2MFY23 compared to 974,245 tonnes exports done during 2MFY22.
North based Mills despatched 4.121 million tons cement domestically during the first two months of current fiscal year showing a reduction of 31.69 percent than cement despatches of 6.033 million tons during July-August 2021. Exports from the North declined by 41.53 percent to 162,210 tons during July-August 2022 compared with 277,422 tons exported during the same period last year.
Domestic despatches by South based Mills during July-August 2022 were 674,436 tons showing reduction of 45.08 percent over 1.228 million tons of cement despatched during the same period of last fiscal year. Exports from South declined by 45.65 percent to 378,747 tons during July-August 2022 compared with 696,823 tons exported during the same period last year.
