Pakistan started with a massive growth in cement dispatches in 1MFY23-24

Pakistan started with a massive growth in cement dispatches in 1MFY23-24
07 August 2023

Pakistan recorded a considerable growth of 57.4 per cent in cement dispatches in July 2023, when total cement dispatches totalled 3.21Mt against 2.04Mt dispatched in July 2022. According to the data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches by the industry in July 2023 were 2.78Mt compared to 1.89Mt in July 2022, showing an increase of 47.2 per cent. Export dispatches increased by 183.9 per cent as the volumes increased from 153,517t in July 2022 to 435,854t in July 2023.

In July 2023 north-based cement mills dispatched 2.47Mt of cement, showing an increase of 46.5 per cent against 1.69Mt dispatches in July 2022. Southern mills shipped 739,376t of cement during July 2023, which was 109.6 per cent more than the dispatches of 352,747t during July 2022. 

Northern cement mills dispatched 2.351Mt of cement in domestic markets in July 2023, showing an increase of 45.4 per cent against 1.62Mt of dispatches in July 2022. South-based mills sent 425,336t of cement to local markets during July 2023, 57.8 per cent more than the dispatches of 269,477t during July 2022. 

Exports from northern mills increased by 73.4 per cent as the quantities increased from 70,247t in July 2022 to 121,814t in July 2023. Exports from the south also increased by 277.1 per cent to 314,040t in July 2023 from 83,270t during the same month last year.

APCMA comments
A spokesman of the APCMA said that the country's economic stability depends on a stable government. He mentioned that although compared to last year, the start of the current fiscal year looks good, the domestic dispatches in July 2023 were almost 20 per cent less than in June 2023, so compared to last month, there was a decline.

He also expressed concerns over the rising cost of production. The provincial government has increased the royalty rate from PKR115/t (US$0.41/t) to PKR250/t (US$0.88/t). He added that the electricity rate has also been increased by almost PKR7.50/unit and the recent increase in fuel cost by around PKR20/l has impacted the freight cost. He was positive that this fiscal year would be better for the sector due to expected investments in large-scale projects.

Published under Cement News