APCMA reports local dispatches improve while exports fall in 9MFY22

APCMA reports local dispatches improve while exports fall in 9MFY22
08 April 2022

According to the data released by the All Pakistan Cement Manufacturers Association (APCMA), Pakistan cement total dispatches (local and overseas) declined by 6.3 per cent in March 2022 to 5.04Mt against 5.37Mt in the same month of last fiscal year. The breakdown suggests a domestic consumption of 4.74Mt and 815,120t of exports versus 4.56Mt and 815,120t, respectively in March 2021. It sees local dispatches up four per cent, but exports dispatches suffered a considerable decline of 63.8 per cent.

Topline Pakistan Research, who is reviewing the dispatch trend, said the increase in local dispatches is due to seasonality amid the resumption of construction activities after the winter. But the decline in exports is on the back of global supply chain disruptions that keep the sea freight charges on a higher level. 

A representative of APCMA urged the government to formulate industry-friendly policies so Pakistani cement sales could regain their position in international markets and increase indigenous consumption of the commodity.

Cumulative dispatches
During the 9MFY22, total cement dispatches (domestic and exports) were 40.81Mt, which amounts to a 5.8 per cent fall from the 43.33Mt dispatched during the corresponding period of last fiscal year. Further analyses indicate that domestic uptake of the commodity slipped to 36.17Mt from 36.18Mt during July-March 2021. In contrast, exports during the same period declined by a significant 35 per cent to 4.64Mt from 7.14Mt during July-March 2021.

According to AKD Research, the volatility in coal prices and political uncertainty in Pakistan has remained a major drag on the stock prices of the cement sector. Once clarity emerges, the cement sector will lead the rally.

Published under Cement News