LAHORE: Cement despatches declined by 14.79% in January 2024 as the sector registered despatches of 3.414 million tons against 4.006 million tons during the same month of last fiscal year.
Data released by the All Pakistan Cement Manufacturers Association on Friday revealed that local cement despatches by the industry during January 2024 were 2.967 million tons compared to 3.588 million tons in January 2023, showing a decline of 17.30%.
Exports despatches however increased by 6.82% as the volumes increased from 418,067 tons in January 2023 to 446,595 tons in January 2024.
In January 2024, North-based cement mills despatched 2.434 million tons cement showing a decline of 15.83% against 2.892 million tons despatches in January 2023. South-based mills despatched 979,970 tons cement during January 2024 that was 12.08% less compared to the despatches of 1.115 million tons during January 2023.
North-based cement mills despatched 2.385 million tons cement in domestic markets in January 2024 showing a decline of 16.50% against 2.856 million tons despatches in January 2023. South-based mills despatched 582,258 tons cement in local markets during January 2024 that was 20.43% less compared to the despatches of 731,747 during January 2023.
Exports from North-based mills increased by 38.81% as the quantities increased from 35,215 tons in January 2023 to 48,883 tons in January 2024.
Exports from South-based mills slightly increased by 3.88% to 397,712 tons in January 2024 from 382,852 tons during the same month last year.
During the first seven months of current fiscal year, total cement despatches (domestic and exports) were 27.296 million tons that is 5.92% higher than 25.770 million tons despatched during the corresponding period of last fiscal year. Domestic despatches during this period were 23.196 million tons against 23.618 million tons during same period last year showing a reduction of 1.79%.
Export despatches showed healthy increase of 90.49% as the volumes increased to 4.1 million tons during the first seven months of current fiscal year compared to 2.152 million tons exports done during same period of last fiscal year.
North-based mills despatched 19.157 million tons cement domestically during the first seven months of current fiscal year showing a reduction of 1.14% than cement despatches of 19.378 million tons during July 2022 to January 2023. Exports from North-based mills increased by 33.71% percent to 820,056 tons during July 2023 to January 2024 compared with 613,289 tons exported during the same period last year.
Total despatches by North-based mills remained almost flat at 19.977 million tons during first seven months of current financial year from 19.991 million tons during same period of last financial year.
Domestic despatches by South-based mills during July 2023 to January 2024 were 4.039 million tons showing reduction of 4.74% over 4.240 million tons cement despatched during the same period of last fiscal year. Exports from South-based mills massively increased by 113.11% to 3.279 million tons during July 2023 to January 2024 compared with 1.539 million tons exported during the same period last year.
Total despatches by South-based mills increased by 26.65% to 7.319 million tons during first seven months of current financial year from 5.779 million tons during same period of last financial year.
The All Pakistan Cement Manufacturers Association (APCMA) commenting on the performance said new axle load regime had reduced the capacity of vehicles significantly leading to operational inefficiencies and increased inland transportation cost as well as freight, handling and shipping costs for export consignments.
All these factors would put pressure on cement prices likely to result in high cost to the domestic consumers and adverse effects on export fronts. Association had repeatedly requested concerned quarters of the government to review the new axle load regulations and to address the related concerns of industry on priority, he concluded.
Copyright Business Recorder, 2024
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