KARACHI: Due to a lack of working days and general election-related vacations, the total cement despatches (domestic and export) decreased by 19.22% to 3.259 million tonnes in February compared to 4.035 million tonnes in the same month previous year.
The All Pakistan Cement Manufacturers Association (APCMA) issued data showing a 20.33 percent decrease in domestic cement sales in February 2023 to 2.863 million tonnes from 3.590 million tonnes in February 2023. Additionally, export dispatches decreased by 11% from 444,962 tonnes in February 2023 to 395,935 tons.
Topline Securities’ Fahad Hussain Khan ascribed the decline in local cement sales to fewer working days in January and a subsequent slowdown in building activity, which typically dwindles in the final days leading up to and around the general elections.
According to him, a decline in pricing in February caused a decrease in exports, which rendered overseas sales unprofitable. The axle load regime is causing problems for the manufacturers when it comes to cement transportation.
According to him, the average retail price of cement increased by Rs6 in the southern region in February to Rs1,195 per 50 kg bag, and by Rs9 in the northern region to Rs1,245.
Domestic cement sales decreased by 4% in 8MFY24 to 26.059 million tonnes from 27.207 million tonnes during the same period the previous year.
Nonetheless, export dispatches increased positively, rising by 73% to 4.496 million tonnes in 8MFY24 from 2.597 million tonnes in the same period the previous year.
Thus, compared to 29.805 million tonnes in 8MFY23, overall cement sales—both domestic and export—rose by 2.52 percent to 30.555 million tonnes.
According to a statement from the APCMA spokesman, the industry is optimistic that the incoming government will create policies that are beneficial to it and give its serious problems first priority.
He pleaded on the next government to begin long-overdue public sector development projects in order to support the construction sector and the hundreds of thousands of laborers who work in it, both skilled and unskilled.
