Pakistan cement consumption grows 13.8% in fiscal 2017-18

Pakistan cement consumption grows 13.8% in fiscal 2017-18
05 July 2018

Pakistan cement industry ended fiscal 2017-18 on a jubilant note, by posting yearly growth of 13.84 per cent with domestic consumption increasing by 15.42 per cent and exports inching up by 1.77 per cent. This is the first time in nine years that cement exports have registered a growth.

According to data released by All Pakistan Cement Manufacturers' Association (APCMA), during the fiscal year 2017-18, domestic consumption stood at 41.147Mt, an increase of 15.42 per cent from 35.651Mt in 2016-17. However, exports grew by only 1.77 per cent from 4.664Mt in 2016-17 to 4.746Mt during 2017-18.

In the month of June 2018 alone, the total cement dispatches were 2.979Mt. Out of this, local dispatches in the north were 2.158Mt against 1.897Mt in June 2017 reflecting growth of 13.77 per cent. Cement dispatches in the south amounted to 0.423Mt against 0.485Mt in June 2017, reflecting negative growth of 12.79 per cent. The exports from grinding facilities located in the north amounted to 0.183Mt against 0.223Mt in June 2017 and from the south was 0.215Mt against 0.122Mt in June 2017.

The industry dispatched 45.893Mt of cement in 2017-18 against 40.315Mt dispatched in 2016-17. This is the highest ever growth posted by the industry in its history. In fact, the past five years have been positive for the cement industry of Pakistan as annual dispatches increased by 12.46Mt from 33.43Mt in 2012-13 to 45.89Mt in 2017-18. The year 2017-18 has witnessed particularly buoyant times as dispatches grew by 5.5Mt.

The industry increased its production capacity by 6.58 per cent during 2017-18 and its capacity utilisation stood at 92.82 per cent, the highest since 1992-93 when its total production capacity was only 8.89Mt compared with 49.44Mt in 2017-18.

A spokesman for the APCMA said that the reinvigorated export activity is a welcome sign for the industry and that the decline in rupee value against the dollar is finally restoring lost competitiveness of the cement sector in the global markets. However, the APCMA said that rising input costs, especially coal and fuel prices, are hurting the local industry.

Published under Cement News