Cement despatches decline by 5.78pc in October 2023

ISLAMABAD: Cement despatches in Pakistan faced a downturn in October 2023, declining by 5.78% on a year-on-year basis. Data released by the All Pakistan Cement Manufacturers Association revealed that total cement shipments for the month were 4.007 million tons, compared to 4.253 million tons during the same month in the previous fiscal year.

During October 2023, local cement despatches by the industry amounted to 3.292 million tons, reflecting a significant decrease of 15.38% from 3.890 million tons in October 2022. However, the industry saw a substantial increase of 97.33% in exports, rising from 362,350 tons in October 2022 to 715,028 tons in October 2023.

Breaking them down by region, North-based cement mills dispatched 2.903 million tons of cement in October 2023, showing a decrease of 11.35% from 3.275 million tons in October 2022. Meanwhile, South-based mills dispatched 1.104 million tons, marking a 12.90% increase from 0.978 million tons in October 2022.

In the domestic market, North-based mills dispatched 2.780 million tons of cement in October 2023, down by 11.57% from 3.143 million tons in October 2022. South-based mills, on the other hand, dispatched 512,320 tons of cement locally during October 2023, a 31.41% decrease from 746,927 tons in October 2022.

Export figures indicated a decline of 6.16% from North-based mills, dropping to 123,029 tons in October 2023 from 131,111 tons in October 2022. In contrast, South-based mills experienced a remarkable increase of 156.01%, reaching 591,999 tons in October 2023 from 231,239 tons in the same month last year.

During the first four months of the current fiscal year, total cement shipments, including domestic and exports, reached 15.892 million tons, reflecting a 14.55% increase from 13.874 million tons during the corresponding period in the last fiscal year. Domestic despatches during this period rose by 7.47%, reaching 13.426 million tons compared to 12.492 million tons in the same period last year. Export despatches surged by 78.53%, increasing to 2.466 million tons from 1.381 million tons in the last fiscal year.

North-based mills dispatched 11.113 million tons of cement domestically during the first four months of the current fiscal year, a 6.83% increase from 10.402 million tons during July-October 2022. While exports from North-based mills rose by 31.31% to 551,264 tons during July-October 2023, compared with 419,823 tons exported during the same period last year. 

Total despatches by North-based mills increased by 7.78% to 11.664 million tons during the first four months of the current financial year from 10.822 million tons in the same period of the last financial year.

Meanwhile south-based mills dispatched 2.312 million tons of cement domestically during July-October 2023, showing a 10.65% increase over the 2.090 million tons dispatched during the same period of the last fiscal year. Exports from South-based mills also increased significantly by 99.15% to 1.915 million tons during July-October 2023, compared with 0.962 million tons exported during the same period last year. Total despatches by South-based mills increased by 38.54% to 4.227 million tons during the first four months of the current financial year from 3.051 million tons in the same period of the last financial year.

The fluctuating trends in cement despatches indicate a dynamic market, with both challenges and opportunities for the industry players in the coming months.