Lahore October 3 2024: Pakistan local cement despatches declined 18% in September 2024 to 2017 levels consequent to increased cement prices due to irrational taxation and low demand.
Overall cement despatches declined by 5.63% in September 2024. Total Cement despatches during September 2024 were 3.540 million tons against3.751 million Tons despatched during the same month of last fiscal year.
A spokesman of All Pakistan Cement Manufacturers Association mentioned that it the fourth straight month in which we are experiencing decline in cement despatches. He expressed disappointment on the trend and said that industry is on the verge of a crisis due to continuous downfall in its capacity utilization. “If the government gives relief in duties and taxes to curb the cost of production, it canboost 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.
According to the data released by All Pakistan Cement Manufacturers Association, local cement despatches by the industry during the month of September 2024 were 2.650 million tons compared to 3.233 million tons in September 2023, showing a decline of 18.02%. On exports side, despatches increased by 71.52% as the volumes jumped from 570,692 tons in September 2023 to 978,871 tons in September 2024.
In September 2024, North based cement mills despatched 2.407 million tons cement showing a decline of 12.78% against 2.759 million tons despatches in September 2023. South based mills despatched 1.246 million tons cement during September 2024 that was 14.23% more compared to the despatches of 0.992 million tons during September 2023.
North based cement mills despatched 2.222 million tons cement in domestic markets in September 2024 showing a decline of 15.51% against 2.630 million tons despatches in September 2023. South based mills despatched 470,931 tons cement in local markets during September 2024 that was 28.95% less compared to the despatches of 662,786 during September 2023.
Exports from North based mills increased by 42.93% as the quantities increased from 142,226 tons in September 2023 to 203,280 tons in September 2024. Exports from South also increased by 81.02% to 775,591 tons in September 2024 from 428,466 tons during the same month last year.
During the first three months of current fiscal year, total cement despatches (domestic and exports) were 10.269 million tons that is 13.59% lower than 11.885 million tons despatched during the corresponding period of last fiscal year.
Domestic despatches during this period were 8.130 million tons against 10.133 million tons during same period last year showing a reduction of 19.78%. Export despatches showed 22.19% growth as the volumes increased to 2.140 million tons during the first three months of current fiscal year compared to 1.751 million tons exports done during same period of last fiscal year.
North based Mills despatched 6.863 million tons cement domestically during the first three months of current fiscal year showing a reduction of 17.65% than cement despatches of 8.333 million tons during July-September 2023. Exports from North increased by 18.42% percent to 507,101 tons during July-September 2024 compared with 428,235 tons exported during the same period last year. Total despatches by North based Mills reduced by 15.88% to 7.370 million tons during first three months of current financial year from8.762 million tons during same period of last financial year.
Domestic despatches by South based Mills during July-September 2024 were 1.267 million tons showing reduction of 29.63% over 1.8 million tons cement despatched during the same period of last fiscal year. Exports from South increased by 23.42% to1.632 million tons during July-September 2024 compared with 1.323 million tons exported during the same period last year. Total despatches by South based Mills reduced by 7.16% to 2.9 million tons during first three months of current financial year from 3.123 million tons during same period of last financial year.
