ISLAMABAD: The cement industry in Pakistan experienced a significant boost in July 2023, with total cement despatches reaching 3.212 million tons, marking a remarkable 57.44% increase compared to the same period last fiscal year.
Local cement despatches demonstrated a robust growth of 47.15% during July 2023, with the industry dispatching 2.776 million tons compared to 1.887 million tons in July 2022. The positive trend also extended to export despatches, which surged by a staggering 183.91%, with volumes escalating from 153,517 tons in July 2022 to 435,854 tons in July 2023.
The regional analysis revealed that North-based cement mills achieved 2.473 million tons despatches during July 2023, registering a remarkable 46.54% increase compared to 1.688 million tons despatched in July 2022. Similarly, South-based mills experienced a notable growth of 109.61%, dispatching 739,376 tons of cement in July 2023, compared to 352,747 tons in July 2022.
In the domestic markets, North-based cement mills delivered 2.351 million tons of cement in July 2023, showcasing a growth of 45.37% compared to 1.617 million tons despatched in July 2022. Likewise, South-based mills contributed to the local markets by despatching 425,336 tons of cement, exhibiting a remarkable 57.84% increase over the 269,477 tons despatched during July 2022.
Export quantities from North-based mills increased by 73.41%, reaching 121,814 tons in July 2023, compared to 70,247 tons in July 2022. Furthermore, South-based mills experienced an impressive 277.13% growth in exports, reaching 314,040 tons in July 2023, compared to 83,270 tons in the same month last year.
While the start of the current fiscal year appears positive in terms of growth, the industry witnessed a slight decline in domestic despatches during July 2023, which were approximately 20 percent less than the figures in June 2023.
A spokesman from the All Pakistan Cement Manufacturers Association expressed optimism for the sector, citing expected investments in large-scale projects during the fiscal year. However, he also raised concerns over rising production costs, which included increased rates of royalty, electricity, and fuel costs impacting the freight expenses.
The cement industry’s performance in July 2023 signals promising growth prospects for the sector, but it also underlines the importance of maintaining economic stability and favorable government policies to ensure continued success in the coming months.
In Pakistan due to high inflation in the markets all building materials are for rich people and poor people can do only loading and unloading this new Pakistan after 75 years .
The price of construction material has gone very much high, a common people can’t afford to make own house.
57% growth in dispatches is impressive. This would improves the top line but in this inflation, it is difficult to build houses.
I would like to know, which segment is being served, do we have a break up, how do you reach this number?
1. Big Infrastructure (roads, bridges etc)
2. Home Construction
3. Industrial Constitution