APCMA expects pick up after dismal start to FY21

APCMA expects pick up after dismal start to FY21
05 August 2021

All Pakistan Cement Manufacturers' Association (APCMA) released total dispatches data for July 2021, which indicate a market contraction of 19.4 per cent to 3.899Mt in the first of month of the new fiscal year, FY21-22. APCMA attributes the declining trend to monsoon rains and the stoppage of construction activities due to Eid-ul-Azha across the country.

A representative of APCMA expressed concerns about the slide in demand. However, he was 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.  

Domestic dispatches dropped from 3.953Mt in July 2020 to 3.446Mt in July 2021, a reduction of 12.8 per cent. Exports decreased by 49 per cent as the country exported only 452,776t in July 2021 against 885,255t during the year-ago equivalent period.

Analysis of zone dispatches reveals a significant decline in domestic cement consumption in the northern region as only 2.892Mt of cement was consumed in July 2021 compared to 3.435Mt in July 2020. It reflects a decrease of 15.8 per cent. However, the exports from the north increased by 10.4 per cent to 135,618t in July 2021 from 122,823t in July 2020.

Southern mills dispatched 554,442t of cement to domestic markets during July 2021, which was 7.1 per cent higher than the dispatches of 517,850t in the corresponding month of last fiscal year. The cement exports from the south experienced a severe dip by 58.4 per cent as volumes dropped to 317,159t from 762,432t in July 2020.

Published under Cement News