Local cement despatches dropped by 18 percent year-on-year in September 2024 due to low demand, whereas exports gained by more than 71 percent year-on-year.
Total Cement despatches during September 2024 were 3.540 million tons against 3.751 million tons despatched during the same month of last fiscal year, down 5.6 percent.
The local cement despatches of the industry for September 2024 stood at 2.650 million tons as compared to 3.233 million tons in the same month of the previous year, hence recording a decline of 18.02 percent, according to statistics published by All Pakistan Cement Manufacturers Association.
On the export side, volumes jump from 570,692 tons of September 2023 to 978,871 tons of September 2024, hence recording an increase of 71.52 percent.
North-based cement mills despatched 2.407 million tons of cement in September 2024 down 12.78 percent against 2.759 million tons despatches in the corresponding month of 2023. South-based mills despatched 1.246 million tons cement during September 2024 up 14.23 percent compared to the despatches of 0.992 million tons during September 2023.
North-based cement mills despatched 2.222 million tons of cement in domestic markets in September 2024 showing a decline of 15.51 percent against 2.630 million tons despatches in September 2023. South-based mills despatched 470,931 tons of cement in local markets during September 2024 that was 28.95 percent less compared to the despatches of 662,786 during September 2023.
The North-based mill’s export increased by 42.93 percent as the quantities increased from 142,226 tons in September 2023 to 203,280 tons in September 2024. Further, the export from South increased by 81.02 percent to 775,591 tons during September 2024 from 428,466 tons during the same month last year.
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Quarterly performance
During the first three months of the current fiscal year, the total cement despatches both domestic and export had reached around 10.269 million tonnes, and was signaling a decrease of about 13.59 percent from last fiscal’s corresponding period wherein 11.885 million tones were despatched.
Domestic despatches during the quarter under review were 8.130 million tons as against 10.133 million tons over corresponding period last year, thus posting a decline of 19.78 percent. Export despatches do an impressive show of 22.19 percent growth as volumes shoot up to 2.140 million tons during the first three months of the current fiscal year versus the 1.751 million tons exports made during corresponding period of the last fiscal year.
North-based Mills despatched 6.863 million tons of cement within the country during the first three months of the current fiscal year, which shows a decline of 17.65 percent compared with the despatches made of 8.333 million tons during July-September 2023. “The North-based Mills increased their exports by 18.42 percent with 507,101 tons during July-September 2024, comparing with 428,235 tons shipped out during the same period last year.”. Total dispatches by north-based mills decreased to 7.370 million tonnes in the first quarter of the current fiscal from 8.762 million tonnes in the same period last fiscal. While domestic dispatches by south-based mills for July-September 2024 stood at 1.267 million tonnes, which is down by 29.63% from 1.8 million tonnes of cement despatched during the same period of the last fiscal.
South increased exports by 23.42 percent to 1.632 million tons during July-September 2024 compared with the 1.323 million tons exported during the corresponding period of last year. Total despatches by South-based Mills were down by 7.16 percent at 2.9 million tons in the first three months of the current fiscal from 3.123 million tons corresponding period of last fiscal. ALSO READ PSX Witnesses Highest Ever Closing after Surge of 754 Points \
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Industry on the edge o crisis
A spokesman of All Pakistan Cement Manufacturers Association said that it is the fourth consecutive month where we are witnessing decline in cement despatches.
He expresses his sorrow over the trend and said that industry is on the edge of a crisis due to persistent decline in its capacity utilization.
“If the government gives relief in duties and taxes to curb the cost of production, it can boost the domestic demand and will also make our product competitive in international markets, enabling us to tap more opportunities to earn foreign exchange for the country,” he added.
