ISLAMABAD: Despite a net decrease in fuel prices, cement despatches experienced a 2.12% decline in November 2023, with total despatches amounting to 3.924 million tons, down from 4.009 million tons in the same month of the last fiscal year.
According to data from the All Pakistan Cement Manufacturers Association, local cement despatches in November 2023 were 3.262 million tons, reflecting a 15.53% decrease compared to November 2022. On the other hand, exports surged by an impressive 348.29%, reaching 662,374 tons from 147,757 tons in November 2022.
In November 2023, North-based cement mills shipped 2.867 million tons, marking a 12.24% decline from November 2022, while South-based mills dispatched 1.057 million tons, a substantial 42.44% increase compared to the previous year.
Domestically, North-based mills sent out 2.723 million tons in November 2023, reflecting a 13.91% decline, while South-based mills dispatched 538,668 tons, showing a 22.85% reduction compared to November 2022. Meanwhile, exports from North-based mills increased by 38.64%, and South-based mills experienced a staggering 1080% surge in exports.
For the first five months of the current fiscal year, total cement despatches, including domestic and exports, reached 19.816 million tons, indicating a 10.81% increase over the same period last fiscal year. Domestic despatches during this period increased by 2.04%, and exports rose by an impressive 104.60%.
North-based mills dispatched 13.836 million tons domestically during the first five months, a 2% increase compared to the same period last year. Exports from North increased by 32.76%, contributing to a total increase of 3.14% in despatches.
South-based mills domestically dispatched 2.851 million tons during July-November 2023, showing a 2.26% increase over the same period last fiscal year. Exports from the South increased by 142.01%, resulting in a total despatch increase of 39.30%.
A spokesperson from the All Pakistan Cement Manufacturers Association expressed concern about the unilateral implementation of the axle load regime, effective from November 1, 2023. These regulations were introduced back in 2000, however the government has struggled to implement them over the years. Experts claim that these regulations mitigate the risk of highway accidents and deterioration.
The Association suggests a phased implementation over the next two to three years to mitigate potential inflationary pressures and a shortage of trucks, which could disrupt market supply and impact exports.
