Lahore September 5 2024: The unprecedented and extremely high tax measures leading to a huge increase in cement prices have led to a steep decline in Demand of cement.
Cement despatches declined by 25.68% in August 2024. Total Cement despatches during August 2024 were 3.366 million tons against 4.528 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 August 2024 were 2.752 million tons compared to 3.798 million tons in August 2023, showing a decline of 27.54%. Exports despatches also declined by 16% as the volumes reduced from 730,755 tons in August 2023 to 613,857 tons in August 2024.
In August 2024, North based cement mills despatched 2.530 million tons cement showing a decline of 22.20% against 3.252 million tons despatches in August 2023. South based mills despatched 835,245 tons cement during August 2024 that was also 34.54% less compared to the despatches of 1.276 million tons during August 2023.
North based cement mills despatched 2.325 million tons cement in domestic markets in August 2024 showing a decline of 24.70% against 3.088 million tons despatches in August 2023. South based mills despatched 426,289 tons cement in local markets during August 2024 that was 39.91% less compared to the despatches of 709,443 during August 2023.
Exports from North based mills increased by 24.79% as the quantities increased from 164,195 tons in August 2023 to 204,901 tons in August 2024. Exports from South however reduced by 27.82% to 408,956 tons in August 2024 from 566,560 tons during the same month last year.
During the first two months of current fiscal year, total cement despatches (domestic and exports) were 6.375 million tons that is 17.82% lower than 7.758 million tons despatched during the corresponding period of last fiscal year. Domestic despatches during this period were 5.214 million tons against 6.578 million tons during same period last year showing a reduction of 20.73%. Export despatches were also 1.65% less as the volumes reduced to 1.161 million tons during the first two months of current fiscal year compared to 1.181 million tons exports done during same period of last fiscal year.
North based Mills despatched 4.418 million tons cement domestically during the first two months of current fiscal year showing a reduction of 18.78% than cement despatches of 5.440 million tons during July-August 2023. Exports from North increased by 6.23% percent to 303,821 tons during July-August 2024 compared with 286,009 tons exported during the same period last year. Total despatches by North based Mills reduced by 17.53% to 4.722 million tons during first two months of current financial year from 5.726 million tons during same period of last financial year.
Domestic despatches by South based Mills during July-August 2024 were 795,846 tons showing reduction of 30.02% over 1.137 million tons cement despatched during the same period of last fiscal year. Exports from South also declined by 4.17% to 857,198 tons during July-August 2024 compared with 894,537 tons exported during the same period last year. Total despatches by South based Mills reduced by 18.64% to 1.653 million tons during first two months of current financial year from 2.032 million tons during same period of last financial year.
A spokesman of All Pakistan Cement Manufacturers Association mentioned that the domestic update is continuously showing negative trend since last 12 months as the industry is struggling to cope with higher taxes and economic uncertainty in the country whereas heavy monsoon also impacted the construction activities during last month.
“In the current budget excise on cement doubled along with sharp increase in other Federal and provincial taxes. No other businesses have been taxed in such an enormous proportion. Government must review the taxation measures as the construction sector is suffering due to continuous decline in domestic offtake, which in turn is hurting the employment opportunities for skilled and unskilled labor putting more pressure on already struggling economy. We urge the government to address the concerns of cement industry in order to bring it out of these difficult times”, he added.
