LAHORE: Cement dispatches declined by 23.98 percent in August 2022. Total Cement dispatches during August 2022 were 3.296 million tons against 4.336 Million Tons dispatched during the same month of last fiscal year.
According to the data released by All Pakistan Cement Manufacturers Association, local cement dispatches by the industry during the month of August 2022 were 2.90 million tons compared to 3.81 million tons in August 2021, showing a decline of 23.75%.
Exports dispatches also declined by 25.70% as the volumes reduced from 521,468 tons in August 2021 to 387,440 tons in August 2022.
In August 2022, North based cement mills dispatched 2.59 MT cement showing a decline of 20.93% against 3.28 MT dispatches in August 2021. South based mills dispatched 700,436 tons cement during August 2022 that was 33.50% less compared to the dispatches of 1.05 million tons during August 2021.
North based cement mills dispatched 2.50 million tons cement in domestic markets in August 2022 showing a decline of 20.29% against 3.14 MT dispatches in August 2021. South based mills dispatched 404,959 tons cement in local markets during August 2022 that was 39.88 percent less compared to the dispatches of 673,572 tons during August 2021.
Exports from North based mills also declined by 35.15% as the quantities reduced from 141,804 tons in August 2021 to 91,963 tons in August 2022. Exports from South also reduced by 22.17% to 295,477 tons in August 2022 from 379,664 tons during the same month last year.
During the first two months of current fiscal year, total cement dispatches (domestic and exports) were 5.336 million tons that is 35.20% lower than 8.235 million tons dispatched during the corresponding period of last fiscal year. Domestic dispatches during this period were 4.795 million tons against 7.261 million tons during same period last year showing a reduction of 33.95%. Export dispatches were also 44.47% less as the volumes reduced to 540,957 tons during the first two months of current fiscal year compared to 974,245 tons exports done during same period of last fiscal year.
North based Mills dispatched 4.121 million tons cement domestically during the first two months of current fiscal year showing a reduction of 31.69% than cement dispatches of 6.033 million tons during July-August 2021. Exports from North declined by 41.53% to 162,210 tons during July-August 2022 compared with 277,422 tons exported during the same period last year.
Domestic dispatches by South based Mills during July-August 2022 were 674,436 tons showing reduction of 45.08% over 1.228 million tons cement dispatched during the same period of last fiscal year. Exports from South declined by 45.65% to 378,747 tons during July-August 2022 compared with 696,823 tons exported during the same period last year.
A spokesman of All Pakistan Cement Manufacturers Association emphasized that it is the need of the time for the government to come up with industry friendly policies.
Massive reduction in cement demand due to economic instability, day by day increasing energy costs coupled with the currency devaluation, are having serious implications on the industry. The floods, that have hit major part of the country, are yet another challenge for the government as restoration of damaged infrastructure and rehabilitation of masses need to be addressed on top priority to bring the country out of the difficult situation.