Local cement despatches drop by 17% in Jan

Local cement despatches dropped by 17.30% to 2.967 million tonnes from 3.588 million tonnes, while export despatches showed a contrasting trend, witnessing a rise of 6.82%, climbing from 4.1 million tonnes to 4.46 million tonnes in January 2024, as revealed by data from the All Pakistan Cement Manufacturers Association (APCMA). 

The figures indicate a concerning trend for the industry, with a significant total dip of 14.79% compared to the same period in FY23. 

Geographically, both North and South-based cement mills experienced declines in despatches. North-based mills dispatched 2.434 MT, marking a 15.83% reduction from 2.892 MT in January 2023. 

Similarly, South-based mills saw a decrease of 12.08%, with despatches falling to 979,970 tonnes from 1.115 MT in January 2023. 

In the domestic market, North-based mills contributed 2.385 MT of cement in January 2024, down by 16.50% from 2.856 MT in January 2023. 

South-based mills supplied 582,258 tonnes to local markets, a decrease of 20.43% compared to January 2023. 

Looking at the broader picture, during the first seven months (July-January) of FY24, total cement despatches, including domestic and exports, increased by 5.92% to 27.296 MT from 25.770 MT in the corresponding period last fiscal year.

However, domestic despatches during this period decreased by 1.79% to 23.196 MT, while export despatches surged by 90.49% to reach 4.1 MT.

APCMA’s spokesperson expressed concerns regarding the new axle load regime, which has led to operational inefficiencies and increased transportation costs for the cement industry.