Cement despatches declined by 14.79% in January 2024. Total Cement despatches during January 2024 were 3.414 million tons against 4.006 million Tons despatched during the same month of last fiscal year. According to the data released by the All Pakistan Cement Manufacturers Association, 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 despatch, 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 of cement, showing a decline of 15.83% against 2.892 million tons of despatches in January 2023. South-based mills despatched 979,970 tons of cement during January 2024, 12.08% less than the despatches of 1.115 million tons during January 2023.

North-based cement mills despatched 2.385 million tons of cement in domestic markets in January 2024, showing a decline of 16.50% against 2.856 million tons of despatches in January 2023. South-based mills despatched 582,258 tons of cement in local markets during January 2024, which was 20.43% less than the despatches of 731,747 in January 2023.

Exports from North-based mills increased by 38.81% as the quantities rose from 35,215 tons in January 2023 to 48,883 tons in January 2024. Exports from the South 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 the current fiscal year, total cement despatches (domestic and exports) were 27.296 million tons, 5.92% higher than the 25.770 million tons despatched last fiscal year. Domestic despatches during this period were 23.196 million tons against 23.618 million tons during the same period the previous year, showing a reduction of 1.79%. Export despatches showed a healthy increase of 90.49% as the volumes increased to 4.1 million tons during the first seven months of the current fiscal year compared to 2.152 million tons of exports during the last fiscal year.

North-based Mills despatched 19.157 million tons of cement domestically during the first seven months of the current fiscal year, showing a reduction of 1.14% from cement despatches of 19.378 million tons from July 2022 to January 2023. Exports from the North increased by 33.71% to 820,056 tons from 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 the first seven months of the current financial year, down from 19.991 million tons during the last financial year.

Domestic despatches by South-based Mills from July 2023 to January 2024 were 4.039 million tons, showing a reduction of 4.74% over 4.240 million tons of cement despatched during the same period of last fiscal year. Exports from the South massively increased by 113.11% to 3.279 million tons from 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 the first seven months of the current financial year from 5.779 million tons during the last financial year.

A spokesman of the All Pakistan Cement Manufacturers Association urged about the serious implications of the new axle load regime due to which the loading capacity of vehicles is significantly reduced, leading to operational inefficiencies and increased inland transportation costs as well as freight, handling, and shipping costs for export consignments. All these factors will pressure cement prices, likely resulting in high costs to domestic consumers and adverse effects on export fronts. He added that the Association has repeatedly requested concerned quarters of the government to review the new axle load regulations and address the related industry concerns on priority.