Lahore December 3 2022: Pakistan cement despatches declined by 16.82% in November 2022 as construction activity slowdown in the country due to disruption of caused by floods and record high interest rates, according to the data released by All Pakistan Cement Manufacturers Association.
Total Cement despatches during November 2022 were 4.009 million tons against 4.820 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 November 2022 were 3.862 million tons compared to 4.125 million tons in November 2021, showing a decline of 6.38%. Exports despatches also declined by massive 78.76% as the volumes reduced from 695,779 tons in November 2021 to 147,757 tons in November 2022.
Economic activity has continued to moderate during the last one year on account of transient disruptions from floods and on-going policy and administrative measures by the government.
In November 2022, North based cement mills despatched 3.267 million tons cement showing a decline of 7.31% against 3.525 million tons despatches in November 2021. South based mills despatched 742,158 tons cement during November 2022 that was 42.71% less compared to the despatches of 1.296 million tons during November 2021.
North based cement mills despatched 3.163 million tons cement in domestic markets in November 2022 showing a decline of 8.83% against 3.470 million tons despatches in November 2021. South based mills despatched 698,225 tons cement in local markets during November 2022 that was 6.60% higher compared to the despatches of 654,983 during November 2021.
Exports from North based mills increased by 87.97% as the quantities increased from 55,234 tons in November 2021 to 103,824 tons in November 2022. Exports from South reduced by 93.14% to 43,933 tons in November 2022 from 640,545 tons during the same month last year.
During the first five months of current fiscal year, total cement despatches (domestic and exports) were 17.883 million tons that is 21.78% lower than 22.861 million tons despatched during the corresponding period of last fiscal year. Domestic despatches during this period were 16.354 million tons against 20.008 million tons during same period last year showing a reduction of 18.26%. Export despatches were also 46.40% less as the volumes reduced to 1.529 million tons during the first five months of current fiscal year compared to 2.853 million tons exports done during same period of last fiscal year.
North based Mills despatched 13.566 million tons cement domestically during the first five months of current fiscal year showing a reduction of 19.18% than cement despatches of 16.786 million tons during July-November 2021. Exports from North increased by 1.48% percent to 523,647 tons during July-November 2022 compared with 516,003 tons exported during the same period last year. Total despatches by North based Mills reduced by 18.57% to 14.089 million tons during first five months of current financial year from 17.302 million tons during same period of last financial year.
Domestic despatches by South based Mills during July-November 2022 were 2.788 million tons showing reduction of 13.47% over 3.222 million tons cement despatched during the same period of last fiscal year. Exports from South declined by 56.97% to 1.005 million tons during July-November 2022 compared with 2.337 million tons exported during the same period last year.
Total despatches by South based Mills reduced by 31.76% to 3.794 million tons during first five months of current financial year from 5.559 million tons during same period of last financial year.
A spokesman of All Pakistan Cement Manufacturers Association mentioned that State Bank must allow opening letter of credits for renewable energy projects needed to reduce our energy cost sand move away from expensive imported fuel. With the start of winter season, gas supplies are also facing interruptions compelling us to use expensive furnace oil thereby increasing the cost of production. Uncertain political situation prevailing in the country since last many months, its economic impacts resulting in sluggish demand and devaluation of our currency are some of the factors that need to be addressed in order to bring the industry out from these difficult times. He added that the government, besides ensuring political stability must accelerate development activities. This would boost production in 40 construction related industries.
