The All Pakistan Cement Manufacturers Association (APCMA) has released data indicating that Pakistan’s cement industry’s dispatches increased by 4.63% in December 2023 to 4.06 million tonnes compared to 3.881 million tonnes dispatched in December 2022. The local cement dispatches were 3.536 million tonnes compared to 3.676 million tonnes in December 2022, showing a decline of 3.81%. However, the export dispatches increased by 155.85% as the volumes jumped from 205,061 tonnes in December 2022 to 524,656 tonnes in December 2023.
In December 2023, North-based cement mills dispatched 3.012 million tonnes of cement against 3.01 million tonnes dispatched in December 2022, showing almost flat growth. On the contrary, south-based mills dispatched 1.048 million tonnes of cement during December 2023, which was 20.50% higher than the dispatches of 0.87 million tonnes during December 2022.
North-based cement mills dispatched 2.936 million tonnes of cement in domestic markets in December 2023, showing a decline of 0.69% against 2.956 million tonnes dispatched in December 2022. South-based mills dispatched 600,073 tonnes of cement in local markets during December 2023, which was 16.62% less than the dispatches of 719,721 tonnes during December 2022.
Exports from North-based mills increased by 39.58% as the quantities rose from 54,427 tonnes in December 2022 to 75,967 tonnes in December 2023. Exports from the South also increased by 197.87% to 448,689 tonnes in December 2023 from 150,634 tonnes during the same month last year.
During the first six months of the fiscal year 2023-24, total cement dispatches (domestic and exports) were 23.876 million tonnes, 9.71% higher than the 21.764 million tonnes dispatched during the corresponding period of the last fiscal year. Domestic dispatches during this period were 20.223 million tonnes against 20.030 million tonnes the previous year, showing an increase of 0.97%. Export dispatches were substantially higher by 110.66% as the volumes increased to 3.653 million tonnes during the current fiscal year compared to 1.734 million tonnes during the last fiscal year.
North-based mills dispatched 16.772 million tonnes of cement domestically during the current fiscal year, showing an increase of 1.52% to cement dispatches of 16.522 million tonnes from July to December 2022. Exports from the North increased by 33.40% to 771,173 tonnes during July to December 2023 compared with 578,074 tonnes exported during the same period last year. Total dispatches by North-based mills increased by 2.59% to 17.543 million tonnes during the current fiscal year from 17.1 million tonnes in the previous financial year.
Domestic dispatches by South-based mills from July to December 2023 were 3.451 million tonnes, showing a reduction of 1.62% over 3.508 million tonnes of cement dispatched during the last fiscal year. However, exports from the South substantially increased by 149.29% to 2.882 million tonnes from July to December 2023 compared with 1.156 million tonnes exported during the same period last year. Total dispatches by South-based mills increased by 35.79% to 6.333 million tonnes during the first six months of the current financial year from 4.664 million tonnes in the previous financial year.
A spokesperson for APCMA expressed serious concerns over the negative growth in domestic dispatches over the last four months. The spokesperson hopes the government will speed up PSDP to increase cement demand and address the industry’s operational problems. Two major issues currently being faced by the cement industry are related to the new Axle Load regime and Track and trace system. The spokesperson said they have contacted the concerned functionaries and expect a positive response.