Pakistan cement sector posted negative growth of 19.41 percent in July 2021. The total cement dispatches in July 2021 were 3.899 million tons against 4.838 million tons during July 2020. Monsoon rains during the month and stoppage of construction activities due to Eid-ul-Azha has seriously affected cement demand.

Domestic dispatches dropped from 3.953 million tons in July 2020 to 3.446 million tons in July 2021, showing a reduction of 12.8 percent. Exports showed a substantial decrease by 49 percent as the country exported only 452,776 tons during July 2021 compared to 885,255 tons during July 2020.

Analysis of zone wise demand revealed a significant decline in domestic cement consumption in the country’s Northern regions, where only 2.892 million tons of cement was consumed in July 2021 compared to 3.435 million tons in July 2020, showing a decrease of 15.81 percent. However, the exports from Northern regions increased by 10.42 percent to 135,618 tons in July 2021 from 122,823 tons in July 2020.

Mills based in the South dispatched 554,442 tons of cement for domestic markets during July 2021 that was 7.07 percent higher than the dispatches of 517,850 tons in the corresponding month of last fiscal. The cement exports from the South experienced a severe dip by a whopping 58.40 percent as the quantities dropped to 317,159 tons from 762,432 tons in July 2020.

A representative of APCMA expressed concerns about the slide in demand. However, he was pretty hopeful that the cement industry would regain its growth momentum in the coming months, mainly due to pro government policies related to the construction sector.

“The government’s sponsored; PSDP projects are in full swing where upfront development funds were released,” he added.