KARACHI: Local cement dispatches decreased by 3.81 percent in 9MFY24 and 0.62 percent in March of this year, respectively, indicating a further slowdown in construction operations.
Local sales decreased by 0.62 percent in March 2023, from 3.357 million tonnes to 3.336 million tonnes. Nonetheless, export dispatches rose from 438,433 tonnes to 605,142 tonnes, a 38 percent rise.
As a result, compared to 3.795 million tonnes in the same month of 2023, the total despatches of cement (including local and export) increased 3.85 percent in March to 3.941 million tonnes.
The All Pakistan Cement Manufacturers Association issued figures indicating that domestic despatches during 9MFY24 were 29.401 million tonnes, compared to 30.564 million tonnes the previous year, indicating a 3.81 percent decrease.
The 9MFY24 saw a solid 68 percent growth in export dispatches, with volumes rising to 5.101 million tonnes from 3.036 million tonnes during the same period the previous year.
Total cement despatches (domestic and export) from July to March of FY24 were 34.502 million tonnes, up 2.68 percent from 33.6 million tonnes over the same time the previous year.
The business expects the incoming government will address its issues, according to an APCMA representative. Although cement factories have expanded to accommodate more workers in anticipation of greater construction activity, reaching maximum capacity is still a long way off.
Low cement sales, according to Fahad Hussain Khan of Topline Securities, were caused by a slowdown in construction activities as a result of higher input costs, a high base effect from the previous year because cement despatches were up due to construction activities related to flooding, and the implementation of axle load because businesses were having trouble transporting cement.
He claimed that Lucky Cement, which lately received orders primarily from African nations, is primarily to blame for the surge in exports.
According to official data, the average retail price in the south grew by Rs 10 per bag to Rs 1,205 per 50 kg bag in March, while in the north it decreased by Rs 6 per bag to Rs 1,239 per bag.
Mr. Fahad predicted that export sales would continue to expand but local sales would remain unchanged year over year at 40 million tons, which was a reduction from an earlier prediction of a 5 percent gain in FY24. Cement shipments could total 47 million tons, up 5% from FY24.
