Cement despatches surge by 7.83pc

Exports despatches increase by 72.16pc to 917,962 tons in May 2024

ISLAMABAD   -   Cement despatches increased by 7.83% in May 2024 as the total despatches were 4.275 million tons against 3.965 million tons despatched during the same month of last fiscal year. According to the data released by All Pakistan Cement Manufacturers Association, local cement despatches by the industry during the month of May 2024 were 3.357 million tons compared to 3.432 million tons in May 2023, showing a decline of 2.17%. Exports despatches however increased by massive 72.16% as the volumes increased from 533,215 tons in May 2023 to 917,962 tons in May 2024.

In May 2024, north based cement mills despatched 2.915 million tons cement, showing an increase of 1.36% against 2.876 million tons despatches in May 2023. South based mills despatched 1.359 million tons cement during May 2024 that was 24.91% more compared to the despatches of 1.089 million tons during May 2023. North based cement mills despatched 2.753 million tons cement in domestic markets in May 2024, showing a decline of 0.44% against 2.765 million tons despatches in May 2023. South based mills despatched 604,672 tons cement in local markets during May 2024 that was 9.33% less compared to the despatches of 666,867 during May 2023. Exports from north based mills increased by 46.11% as the quantities increased from 111,511 tons in May 2023 to 162,929 tons in May 2024. Exports from south also increased by 79.04% to 755,033 tons in May 2024 from 421,704 tons during the same month last year.

During the first eleven months of current fiscal year, total cement despatches (domestic and exports) were 41.730 million tons that is 3.00% higher than 40.516 million tons despatched during the corresponding period of last fiscal year. Domestic despatches during this period were 35.097 million tons against 36.526 million tons during same period last year, showing a reduction of 3.91%. Export despatches were 66.26% more as the volumes increased to 6.633 million tons during the first eleven months of current fiscal year compared to 3.990 million tons exports done during same period of last fiscal year.

North based mills despatched 28.931 million tons cement domestically during the first eleven months of current fiscal year, showing a reduction of 3.31% than cement despatches of 29.921 million tons during July 2022-May 2023. Exports from north increased by 38.47% percent to 1.349 million tons during July 2023-May 2024 compared with 0.974 million tons exported during the same period last year. Total despatches by north based mills reduced by 1.99% to 30.280 million tons during first eleven months of current financial year from 30.896 million tons during same period of last financial year.

Domestic despatches by south based mills during July 2023-May 2024 were 6.166 million tons, showing reduction of 6.64% over 6.605 million tons cement despatched during the same period of last fiscal year. Exports from South increased by 75.23% to 5.284 million tons during July 2023-May 2024 compared with 3.015 million tons exported during the same period last year. Total despatches by south based mills increased by 19.02% to 11.450 million tons during first eleven months of current financial year from 9.620 million tons during same period of last financial year. A spokesman of All Pakistan Cement Manufacturers Association said that healthy rise in exports is a good omen, however, industry is largely dependent on domestic markets to reach its potential. It is a matter of serious concern that cement sector continues to post negative growth in local despatches for the 9th straight month. We are very hopeful that government will give due attention to concerns of cement industry in upcoming budget. “We have an almost one third idle capacity, which if utilized, can bring our operational costs down and provide relief to end consumers”, he added.

ePaper - Nawaiwaqt