The cement sector saw a 19.22% decline in overall despatches, both domestic and international, amounting to 3.259 million tonnes in February compared to 4.035 million tonnes in the same month the previous year.
The All Pakistan Cement Manufacturers Association (APCMA) reported this drop was influenced by fewer working days and holidays surrounding the general elections.
Domestic sales experienced a 20.33% reduction, falling to 2.863 million tonnes from February 2023’s 3.590 million tonnes.
Similarly, export despatches decreased by 11%, to 395,935 tonnes from the previous year’s 444,962 tonnes.
The decrease in local sales is attributed to a reduced number of working days in February, coupled with a deceleration in construction activities around the election period, according to Fahad Hussain Khan from Topline Securities.
He also noted that a decline in export prices rendered foreign sales less viable, compounded by transportation challenges stemming from the axle load regime.
Additionally, the report highlighted an increase in the average retail price of cement in February, with a Rs6 per 50kg bag rise in the southern region to Rs1,195, and a Rs9 increase to Rs1,245 in the northern region.
Despite the February slump, the first eight months of the fiscal year 2024 (8MFY24) saw a 4% drop in domestic sales to 26.059 million tonnes from 27.207 million tonnes in the corresponding period last year.
However, export despatches surged by 73% to 4.496 million tonnes in 8MFY24 from 2.597 million tonnes, leading to a 2.52% increase in total cement sales to 30.555 million tonnes compared to 29.805 million tonnes in 8MFY23.
The APCMA spokesperson expressed optimism that the incoming government would introduce policies favorable to the industry and prioritize addressing its critical issues.
The spokesperson also called for the commencement of pending public sector development projects to support the construction industry and the workforce reliant on it.
