ISLAMABAD: The cement industry in the country has produced a record 33.88 million tons of cement during first ten months of on-going fiscal year, registering domestic consumption of 29.871 million tons.
Of the total production, the exports were only 4.01 million tons during the period.
Similarly, during same period of last year, cement despatched was 31.901 million tons, out of which domestic consumption was 26.973 million tons and exports were 4.928 million tons.
A data issued by All Pakistan Cement Manufacturers Association (APCMA) on Monday showed that during the July-April 2017 the domestic consumption of cement surged by 10.74 percent while exports declined by 18.63 percent.
The data showed that in month of April the cement units despatched 3.576 million tons, out of which 2.734 million tons cement was despatched in Northern parts of the country and 0.586 million tons was despatched in Southern parts.
During month of April 2017, capacity utilization of the industry remained 92 percent while the domestic consumption of cement surged by 9.53 percent and exports declined by 50.75 percent.
When contacted, a Spokesman of All Pakistan Cement Manufacturers Association said buoyancy in domestic market is a good omen for the cement industry. However, he said, it is not prudent to ignore the sharp decline in exports which at one time peaked above 10 million tons.
He said the industry is operating on excess capacity and is regularly adding new units to keep abreast with expected increase in construction activities.
Naturally, he added, the cement manufacturers are more interested in catering to domestic market but they have to dispose of excess capacities through exports. If exports continued to decline new capacity additions in the sector would stop.
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