APCMA reports Pakistan cement dispatch rise for 5MFY2018-19

According to All Pakistan Cement Manufacturer Association (APCMA), total dispatches from Pakistan's cement mills in the first five months of this fiscal July-Nov 2018 stood at 19.253Mt against dispatches of 18.513Mt achieved during the corresponding period of last financial year. This represents a four per cent YoY growth.

Of this total, the domestic dispatches during July-November 2018 stood at 16.283Mt compared with dispatches of 16.434Mt recorded in July-November 2017. The net decline in domestic demand is set against a background of increasing industry capacity. 

Exports in 5MFY17-18 stood at 2.079Mt, representing an increase of over 42 per cent in the 5MFY18-19 to 2.969Mt.

In November 2018 cement industry dispatches reached at 3.899Mt of cement, down one per cent when compared with 3.941Mt of cement dispatched during the corresponding month of last year.

The breakdown showed that plants located in the northern region of the country dispatched 2.871Mt of cement in November 2018 compared with 3.245Mt in November 2017. Local cement dispatches in November 2018 were 2.632Mt, down from 2.967Mt in November 2017. The region also failed to register growth in exports which decreased from 0.278Mt in November 2017 to 0.239Mt in November 2018.

The mills operating in the southern part of the country dispatched 1.029Mt of cement in November 2018 compared with 0.696Mt produced in November 2017. Local dispatches from the region grew from 0.626Mt in November 2017 to 0.705Mt in November 2018 while exports also shot up to 0.324 Mt from 0.070Mt in November 2017.

In the past five years, the cement industry maintained the growth momentum. However, domestic consumption has stagnated, this is now coming to a halt. Exports have picked up in the south due to the significant devaluation of the Pakistani rupee. The northern region, which catered to Afghanistan and Indian markets, has not benefitted from the currency depreciation because of political reasons, APCMA observed.

A spokesman of the APCMA hoped that the government would speed up its housing scheme and other development projects to boost construction industry that is one of the largest employers in the country.