Cement dispatches declined in Pakistan by 4.2 percent in December 2021

Cement dispatches declined by 4.2 percent in December 2021. Total Cement dispatches during December 2021 were 4.59 million tons against 4.79 Million Tons dispatched during the same month of last fiscal year. According to the data released by All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches by the industry during the month of December2021 were 4.057 million tons compared to 4.159 million tons in December 2020, showing a reduction of 2.45 percent. Exports dispatches declined by 15.61 percent as the volumes reduced from 637,511 tons in December 2020 to 538,002 tons in December 2021.

In December2021, North based cement mills dispatched 3.377 million tons cement in domestic markets showing a reduction of 2.71 percent against 3.471 million tons dispatches in December2020. The South based mills dispatched 680,126 tons cement in local markets during December2021 that was 1.15 percent less compared to the dispatches of 688,056 tons during December2020.

Exports from North based mills massively declined by 77.35 percent as the quantities reduced from 123,089 tons in December2020 to 27,885 tons in December2021. Exports from the South slightly reduced by 0.84 percent to 510,117 tons in December 2021 from 514,422 tons during the same month last year.

During the first six months of current fiscal year, total cement dispatches (domestic and exports) were 27.456 million tons that calculates to 4.12 percent lower than 28.637 million tons dispatched during the corresponding period of last fiscal year. Further analysis indicate that domestic uptake of the commodity slightly increased by 1.91 percent to 24.065 million tons from 23.615 million tons during July-December 2020 whereas exports during the same period declined by a massive 32.47 percent to 3.391 million tons from 5.021 million tons during July-December 2020.

North based Mills dispatched 20.163 million tons cement domestically during the first six months of current fiscal year showing a slight reduction of 0.32 percent than cement dispatches of 20.228 million tons during July-December 2020. Exports from North declined by 55.08 percent to 543,888 tons during July-December2021 compared with 1.210 million tons exported during the same period last year. Aggregate dispatches (domestic plus exports) in north were 20.706 million tons that calculates to 3.42 percent lower than 21.439 million tons dispatched during the corresponding period of last fiscal year.

Domestic dispatches by South based Mills during July-December2021 were 3.902 million tons showing an increase of 15.23 percent over 3.386 million tons cement dispatched during the same period of last fiscal year. There was however substantial decline of around 25.29 percent in exports from south zone as the volumes reduced to 2.847 million tons in the first six months of current fiscal year from 3.810 million tons during corresponding period of last fiscal year. Combined despatchers (domestic plus exports) in south were 6.749 million tons that calculates to 6.22 percent lower than 7.197 million tons dispatched during the corresponding period of last fiscal year.

A representative of All Pakistan Cement Manufacturers Association emphasized that the industry continues to face problems due to currency devaluation, increase in electricity tariffs, coal cost as well as high taxation. Cement industry does not get any subsidy from government and in fact it contributes to national exchequer by exporting its products again without getting any form of subsidy from government and it also contributes billions of rupees in form of Income Tax, Sales Tax and Federal Excise Duty. Industry expects government to provide a level playing field so that Industry can compete and remain competitive.

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