Lahore: Cement sector posted a growth of 1.98% in February 2021 as compared to February 2020, whereas total cement dispatches during February 2021 were 4.577 million tons against 4.489 million tons dispatched during the same month of last fiscal year.
According to the data released by All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches in the month of February 2021 showed a nominal increase compared to February 2020.
Local dispatches were 3.961 million tons in February 2021 compared to 3.735 million tons in February 2020, depicting a growth of 6.06%. Exports continued with a declining trend as seen during last three months. Total exports dropped by 18.24% from 753,444 tons in February 2020 to 616,030 tons in February 2021.
During February 2021, the North based factories dispatched 3.28 million tons cement locally showing an increase of 3.32% from 3.17 million tons in February 2020, while the South based mills dispatched 683,384 tons cement for local consumption which was 21.49% higher than 562,501 tons’ cement dispatched in February 2020.
Exports from North based mills decreased by 7.71% to 186,595 tons in February 2021 from 202,181 tons in February 2020 whereas the exports from South decreased by 22.10% to 429,435 tons in February 2021 from 551,263 tons during the same month last year.
During the first eight months of this fiscal year, total cement dispatches (domestic and exports) were 37.95 million tons that was 13.92% higher than 33.31 million tons’ cement dispatched during the corresponding period of last fiscal year.
Local dispatches increased by 15.51% during the first eight-month period of current fiscal year 2020-21 to 31.62 million tons from 27.37 million tons during same period of last fiscal year.
Exports increased from 5.94 million tons during first eight months of last fiscal year to 6.33 million tons during same period of current fiscal year showing a growth of 6.62%.
During the first eight months of the current fiscal year, north based mills dispatched 26.82 million tons of cement for domestic consumption that was 15.29% higher compared to the dispatches during the same period last fiscal that stood at 23.26 million tons.
Exports from North were 1.63 million tons showing a decline of 9.83% over exports of 1.81 million tons during the same period of last fiscal year.
South based mills dispatched 4.79 million tons in the domestic market during the first eight months of current fiscal year which was 16.73% higher than 4.11 million tons dispatched during the corresponding period of last fiscal year. The exports from South were 4.70 million tons registering an increase of 13.82% over exports of 4.13 million tons during the same period last year.
As per APCMA, rising cost of electricity and coal have led to increase the cost of cement production, which is becoming difficult for the cement industry to absorb.