Pakistan’s cement sales declined by 7 percent in September 2022 as total cement sales during September 2022 were recorded at 4.276 million tons against 4.589 million tons during the same month of the last fiscal year.
According to the data released by the All Pakistan Cement Manufacturers Association, local cement sales during September were 3.80 million tons compared to 4.01 million tons in the same month of the previous year, showing a decline of 5.33 percent. Exports also declined by 17.35 percent as the volumes reduced from 571,613 tons in September 2021 to 472,437 tons in September 2022.
In September 2022, North-based cement mills sold 3.26 million tons of cement showing a decline of 8.34 percent against 3.56 million tons sold in September 2021. South-based mills sold 1.01 million tons of cement during September 2022 which was 1.58 percent less compared to the sales of 1.02 million tons in September 2021. North-based cement mills sold 3.13 million tons of cement in domestic markets in September 2022 showing a decline of 9.08 percent against 3.45 million tons sold in September 2021.
South-based mills sold 666,595 tons cement in local markets during September 2022 which was 17.47 percent higher compared to the sales of 567,445 tons in September 2021.
Exports from North-based mills increased by 14.75 percent as the quantities increased from 110,245 tons in September 2021 to 126,502 tons in September 2022. Exports from the South reduced by 25.02 percent to 345,935 tons in September 2022 from 461,368 tons during the same month last year.
During the first three months of the current fiscal year, total cement sales (domestic and exports) were recorded at 9.613 million tons which is 25.04 percent lower than 12.825 million tons during the corresponding period of the last fiscal year.
Domestic sales during this period were 8.599 million tons against 11.279 million tons during the same period last year showing a reduction of 23.76 percent. Exports were also 34.44 percent less as the volumes reduced to 1.013 million tons during the first three months of the current fiscal year compared to 1.545 million tons of exports during the same period of last fiscal year.
North-based Mills sold 7.258 million tons cement domestically during the first three months of the current fiscal year showing a reduction of 23.46 percent than 9.483 million tons during July-September 2021.
Exports from the North declined by 25.53 percent to 288,712 tons during July-September 2022 compared with 387,667 tons exported during the same period of last year. Total sales by North-based Mills reduced by 23.54 percent to 7.547 million tons during the first quarter of the current fiscal year from 9.871 million tons during the same period of last fiscal year.
Domestic sales by South-based Mills during July-September 2022 were 1.341 million tons showing a reduction of 25.31 percent over 1.795 million tons cement sold during the same period of last fiscal year. Exports from the South declined by 37.43 percent to 724,682 tons during July-September 2022 compared with 1.158 million tons exported during the same period last year. Total sales by South-based Mills reduced by 30.06 percent to 2.065 million tons during the first quarter of the current fiscal year from 2.953 million tons during the same period of the last fiscal year.
A spokesman of the All Pakistan Cement Manufacturers Association expressed serious concerns over strict limitations on establishing letters of credit by the State Bank of Pakistan (SBP) for spare parts and other machinery. The government must relax conditions for opening letters of credit immediately as, without spare parts, cement factories will face difficulties in running their operations, the spokesman added.
