LAHORE: Massive reduction in cement demand, due to economic instability and day-by-day increasing energy costs coupled with the currency devaluation, is having serious implications on the industry which warrants that the government should come up with the industry friendly policies to tackle the situation.
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, said All Pakistan Cement Manufacturers Association (APCMA) on Friday.
The Association claimed that the cement despatches declined by 23.98 percent in August 2022 as compared to the corresponding period. Total cement despatches during August 2022 were 3.296 million tons against 4.336 million tons despatched during the same month of last fiscal year, reveals the data released by the Association on Friday.
According to the data, local cement despatches 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 percent. Exports despatches also declined by 25.70 percent 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 despatched 2.59 million tons cement showing a decline of 20.93 percent against 3.28 million tons despatches in August 2021. South based mills despatched 700,436 tons cement during August 2022 that was 33.50 percent less compared to the despatches of 1.05 million tons during August 2021.
North based cement mills despatched 2.50 million tons cement in domestic markets in August 2022 showing a decline of 20.29 percent against 3.14 million tons despatches in August 2021. South based mills despatched 404,959 tons cement in local markets during August 2022 that was 39.88 percent less compared to the despatches of 673,572 tons during August 2021.
Exports from North based mills also declined by 35.15 percent as the quantities reduced from 141,804 tons in August 2021 to 91,963 tons in August 2022. Exports from South reduced by 22.17 percent to 295,477 tons in August 2022 from 379,664 tons during the same month of the last year.
During the first two months of current fiscal year, total cement despatches (domestic and exports) were 5.336 million tons that is 35.20 percent lower than 8.235 million tons despatched during the corresponding period of last fiscal year.
Domestic despatches during this period were 4.795 million tons against 7.261 million tons during same period last year showing a reduction of 33.95 percent. Export despatches were also 44.47 percent 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 despatched 4.121 million tons cement domestically during the first two months of current fiscal year showing a reduction of 31.69 percent than cement despatches of 6.033 million tons during July-August 2021. Exports from North declined by 41.53 percent to 162,210 tons during July-August 2022 compared with 277,422 tons exported during the same period last year.
Domestic despatches by South based Mills during July-August 2022 were 674,436 tons showing reduction of 45.08 percent over 1.228 million tons cement despatched during the same period of last fiscal year. Exports from South declined by 45.65 percent to 378,747 tons during July-August 2022 compared with 696,823 tons exported during the same period last year.
Copyright Business Recorder, 2022