Cement Sales Decline by 24% in March as Construction Activities Slow Down

The total cement sales in March 2023 stood at 3.795 million tons compared to sales of 5 million tons recorded in the same month of the previous fiscal year, registering a decline of 24 percent.

According to the data released by the All Pakistan Cement Manufacturers Association, local cement sales by the industry during the month of March were 3.356 million tons compared to 4.710 million tons in March 2022, showing a decline of 28.75 percent. Exports increased by 48.46 percent as the volumes increased from 295,321 tons in March 2022 to 438,433 tons in March 2023.

In March 2023, sales of North-based cement mills stood at 2.82 million tons showing a decline of 28.22 percent against 3.929 million tons in March 2022. The sales of South-based mills stood at 974,467 tons in March 2023, down 9.48 percent compared to the sales of 1.076 million tons during March 2022.

The sales of North-based cement mills stood at 2.72 million tons in the domestic markets in March 2023, showing a decline of 29.33 percent against sales of 3.849 million tons in March 2022. The sales of South-based mills stood at 636,465 tons in the local markets during March 2023, down 26.14 percent compared to the sales of 861,742 during March 2022.

Exports from North-based mills increased by 24.63 percent as the quantities increased from 80,584 tons in March 2022 to 100,431 tons in March 2023. Exports from the South also increased by 57.40% to 338,002 tons in March 2023 from 214,737 tons during the same month last year.

During the first nine months of the current fiscal year, total cement sales (domestic and exports) stood at 33.6 million tons, down 17.59 percent compared to sales of 40.769 million tons during the corresponding period of the last fiscal year. Domestic sales during this period were 30.564 million tons against 36.126 million tons during the same period last year showing a decrease of 15.40 percent. Exports were also down 34.62 percent as the volumes reduced to 3.036 million tons during the first nine months of the current fiscal year compared to exports of 4.643 million tons during the same period of the last fiscal year.

A spokesman of the All Pakistan Cement Manufacturers Association said that construction activities in both the Northern and Southern regions of the country have significantly decreased in the last many months which is not only creating an alarming situation for the industry but also drying up the employment opportunities for skilled and unskilled labor attached to the construction sector.

The spokesperson said that continued political instability, currency devaluation, and poor economic conditions are badly affecting all the industrial sectors including cement.