APCMA releases mixed dispatches data for Feb 2023

Pakistan’s local cement dispatches fall and exports rise in February. Commenting on the trend of dispatches, a spokesman of the All Pakistan Cement Manufacturers Association (APCMA) emphasised that the economic situation in the country is becoming more and more complicated with each passing day: "We are facing serious operational problems and need a timely supply of spare parts and consumable items to ensure the stable operation of plants." He urged the government to develop practically applicable and industry-friendly policies to enable the industry to emerge from this difficult situation. A local research house also blames the high cost of construction, particularly steel prices, and bank borrowing rates have now increased to 20 per cent, making the construction sector vulnerable. 

According to the APCMA, the country’s total cement dispatches (local and overseas) declined by 7.1 per cent to 4.04Mt in February 2023 against 4.348Mt dispatched during the same month of last fiscal year. Out of this figure, local cement dispatches were 3.59Mt compared to 3.94Mt in February 2022, showing a decline of nine per cent. While export dispatches increased by 11 per cent as the volumes increased from 405,489t in February 2022 to 449,940t in February 2023.

In February 2023 north-based cement mills (Punjab and Khyber Pakhtunkhwa provinces) dispatched 3.01Mt of cement, showing a decline of 7.4 per cent against 3.26Mt dispatches in February 2022. The southern mills (Sindh and Balochistan provinces) dispatched 1.03Mt cement during February 2023, which was 6.1 per cent compared to the dispatches of 1.09Mt during February 2022.

The northern cement mills dispatched 2.949Mt cement in domestic markets in February 2023, showing a decline of 8.3 per cent against 3.22Mt dispatches in February 2022. Southern mills dispatched 640,645t of cement in local markets during February 2023, which was 12 per cent less than the dispatches of 728,302t during February 2022.

Exports from northern mills increased by 58.2 per cent as the quantities rose from 40,902t in February 2022 to 64,717t in February 2023. Exports from the south also increased by 5.7 per cent to 385,223t in February 2023 from 364,587t during the same month last year.

Cumulative dispatches
During 8MFY22-23, total cement dispatches (domestic and exports) were 29.81Mt, 16.7 per cent lower than 35.76Mt dispatched during the corresponding period of the last fiscal year. Domestic dispatches during this period were 27.21Mt against 31.42Mt during the same period last year, showing a reduction of 13.4 per cent. Export dispatches were also 40.2 per cent less as the volumes reduced to 2.6Mt during the first eight months of the current fiscal year compared to 4.348Mt exports during the last fiscal year.

Northern mills dispatched 22.327Mt cement domestically during the 8MFY22-23, showing a reduction of 14.4 per cent against cement dispatches of 26.09Mt during July 2021-February 2022. Exports from the north increased by 13.2 per cent to 678,006t during July 2022-February 2023 compared with 598,897t exported during the same period last year. Total dispatches by northern mills reduced by 13.8 per cent to 23.01Mt during 8MFY22-23 from 26.69Mt during the same period of last financial year.

Domestic dispatches by southern mills during 8MFY22-23 were 4.88Mt, showing a reduction of 8.4 per cent over 5.33Mt cement dispatched during the last fiscal year. Exports from the south declined by 48.7 per cent to 1.92Mt during July 2022-February 2023 compared with 3.75Mt exported during the same period last year. Total dispatches by southern mills reduced by 25 per cent to 6.8Mt during 8MFY22-23 from 9.08Mt during the same period of last financial year.