Cement despatches declined by 12.58 percent in June 2024. Total cement despatches in June 2024 were 3.552 million tons against 4.063 million tons despatched in the same month of last fiscal year.
In FY24, total cement despatches (domestic and exports) were 45.291 million tons, 1.60 percent more than 44.579 million tons despatched in FY23 with domestic despatches showing a reduction of 4.58 percent over the previous year.
According to the data released by the All Pakistan Cement Manufacturers Association, local cement despatches by the industry in June 2024 were 3.079 million tons compared to 3.487 million tons in June 2023, showing a decline of 11.69 percent. Export despatches declined by 17.95 percent as the volumes reduced from 576,309 tons in June 2023 to 472,865 tons in June 2024.
In June 2024, North-based cement mills despatched 2.723 million tons cement showing a decline of 7.71 percent against 2.950 million tons despatched in June 2023. South-based mills despatched 829,582 tons cement in June 2024 which was 25.47 percent less compared to the despatches of 1.113 million tons in June 2023.
North-based cement mills despatched 2.614 million tons cement in domestic markets in June 2024 showing a decline of 8.45 percent against 2.855 million tons despatched in June 2023. South-based mills despatched 465,578 tons cement in local markets in June 2024 which was 26.34 percent less compared to the despatches of 632,093 in June 2023.
Exports from North-based mills increased by 14.19 percent as the quantities increased from 95,333 tons in June 2023 to 108,861 tons in June 2024. Exports from the South reduced by 24.32 percent to 364,004 tons in June 2024 from 480,976 tons in same month last year.
FY24 Performance
In FY24, total cement despatches (domestic and exports) were 45.291 million tons. Domestic despatches in this period were 38.181 million tons against 40.013 million tons last year showing a reduction of 4.58 percent. Export despatches showed an increase of 55.71 percent as the volumes jumped to 7.110 million tons in FY24 compared to 4.566 million tons of exports done in FY23.
North-based Mills despatched 31.545 million tons cement domestically in FY24 showing a reduction of 3.76 percent compared to cement despatches of 32.776 million tons in FY23. Exports from the North increased by 36.23 percent to 1.457 million tons in FY24 compared with 1.069 million tons exported in FY23. Total despatches by North-based Mills reduced by 2.49 percent to 33.002 million tons in FY24 from 33.846 million tons in FY23.
Domestic despatches by South-based Mills in FY24 were 6.636 million tons showing a reduction of 8.30 percent over 7.237 million tons cement despatched in FY23. Exports from the South increased by 61.67 percent to 5.652 million tons in FY24 compared with 3.496 million tons exported in FY23. Total despatches by South-based Mills increased by 14.49 percent to 12.289 million tons in FY24 from 10.734 million tons in FY23.
Manufacturers Warn of Low Demand
A spokesperson for the All Pakistan Cement Manufacturers Association emphasized that the domestic market is pivotal for the cement industry and a decline in its uptake in FY24 calls for serious attention from policymakers. He said that the situation calls for lowering duties and taxes on cement, but on the contrary, the government has increased excise duty from Rs. 2,000 per ton to Rs. 4,000 per ton in the budget which is likely to dampen the demand further.
Follow ProPakistani on Google News & scroll through your favourite content faster!
Support independent journalism
If you want to join us in our mission to share independent, global journalism to the world, we’d love to have you on our side. If you can, please support us on a monthly basis. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.
