Cement despatches declined by 7.10% during Feb 2023

ISLAMABAD: Due to the deteriorating economic situation, imports constraints and slowed construction activities, the cement despatches declined by 7.10% in February 2023. Total cement despatches during this month were 4.040 million tons, against 4.348 million tons despatched during the same month of the last fiscal year.

According to industry sources, the economic situation in the country is becoming increasingly complicated with each passing day. As a result of the economic turmoil, the cement industry is facing serious operational problems.

As per the data released by the All Pakistan Cement Manufacturers Association (APCMA) on Friday, local cement shipments by the industry during the month of February 2023 were 3.590 million tons compared to 3.943 million tons in February 2022, showing a decline of 8.96%. Exports despatches increased by 10.96% as the volumes increased from 405,489 tons in February 2022 to 449,940 tons in February 2023.

 In February 2023, north-based cement mills despatched 3.014 million tons of cement, showing a decline of 7.42% against 3.255 million tons dispatched in February 2022. South-based mills despatched 1.025 million tons of cement during February 2023, which was 6.13% less compared to the despatches of 1.093 million tons in February 2022.

North-based cement mills despatched 2.949 million tons of cement in domestic markets in February 2023, showing a decline of 8.26% against 3.215 million tons in February 2022. South-based mills despatched 640,645 tons of cement in local markets during February 2023, which was 12.04% less compared to the despatches of 728,302 in February 2022.

 Exports from north-based mills increased by 58.22% as the quantities increased from 40,902 tons in February 2022 to 64,717 tons in February 2023. Exports from the south also increased by 5.66% to 385,223 tons in February 2023 from 364,587 tons during the same month last year.

During the first eight months of the current fiscal year, total cement despatches (domestic and exports) were 29.81 million tons, which is 16.65% lower than 35.763 million tons despatched during the corresponding period of the last fiscal year. Domestic shipments during this period were 27.207 million tons against 31.416 million tons during the same period last year, showing a reduction of 13.39%. Export despatches were also 40.15% less as the volumes reduced to 2.602 million tons during the first eight months of the current fiscal year compared to 4.348 million tons exports done during the same period of the last fiscal year.

North-based mills dispatched 22.327 million tons of cement domestically during the first eight months of the current fiscal year showing a reduction of 14.42% than cement despatches of 26.089 million tons during July 2021 ~ February 2022. Exports from the north increased by 13.21% percent to 678,006 tons during July 2022 ~ February 2023 compared to 598,897 tons exported during the same period last year. Total despatches by north-based mills reduced by 13.80% to 23.005 million tons during the first eight months of the current financial year from 26.688 million tons during the same period of the last financial year.

Domestic despatches by south-based mills during July 2022 ~ February 2023 were 4.880 million tons showing a reduction of 8.38% over 5.327 million tons of cement despatched during the same period of the last fiscal year. Exports from the south declined by 48.67% to 1.924 million tons during July 2022 ~ February 2023 compared to 3.749 million tons exported during the same period last year. Total despatches by south-based Mills reduced by 25.03% to 6.804 million tons during the first eight months of the current financial year from 9.076 million tons during the same period of the last financial year.

Meanwhile in a statement, a spokesman of the All Pakistan Cement Manufacturers Association said that the industry needed timely supply of spare parts and consumable items to ensure stable operation of the plants. “We urge the government to come-up with practically applicable and industry friendly policies in order to enable the industry to come out of this difficult situation,” he added.