Cement sales fall 8% in FY22
Sales of Pakistan’s cement industry fell in the just ended fiscal year due to an uncertain economic situation prevailing in the country, said an industry association.
During fiscal year 2021-22, total cement dispatches (domestic and exports) came in at 52.89 million tons, which were 7.91% lower than the dispatches of 57.43 million tons a year earlier, according to data released by the All Pakistan Cement Manufacturers Association (APCMA).
Domestic demand edged down 1% to 47.63 million tons in July-June FY22 from 48.11 million tons in the previous year. Exports during the same time period dived 43.57% to 5.25 million tons against 9.31 million tons.
In June alone, cement sales inched up 1.01%. Total dispatches during the month were 5.26 million tons against 5.21 million tons in the same month a year earlier.
Data revealed that local cement dispatches by the industry during June 2022 stood at 4.97 million tons compared to 4.66 million tons in June 2021, showing an increase of 6.66%.
Export dispatches suffered a massive decline of 47.57% as volumes decreased from 542,622 tons in June 2021 to 284,471 tons in June 2022.
In June 2022, the north zone cement mills sold 4.12 million tons in the domestic market, an increase of 6.8% against 3.85 million tons in June 2021.
South-based mills dispatched 856,863 tons to the local market during the month, which was 5.98% higher than the dispatches of 808,490 tons in June 2021.
North zone mills witnessed a massive drop of 51.79% in exports as volumes reduced from 201,540 tons in June 2021 to 97,163 tons in June 2022.
South zone mills also recorded a slump of 45.08% in exports that reached 187,308 tons in June 2022 from 341,082 tons
during the same month of previous year.
North zone mills dispatched a total of 39.44 million tons of cement to the local market during fiscal year 2021-22, registering a reduction of 2.81% from 40.58 million tons in FY21.
Exports from the north zone mills dipped 64.52% to 910,685 tons during FY22 compared with exports of 2.56 million tons during the previous fiscal year.
Domestic dispatches by mills in the south zone were 8.19 million tons in FY22, showing an increase of 8.74% over 7.53 million tons during the previous fiscal year.
There, was, however a substantial decline of around 35.6% in exports from the south zone as volumes reduced to 4.34 million tons in FY22 from 6.74 million tons during the previous year.
Expressing concern over the uncertainty about government’s policies, an APCMA spokesperson indicated that the industry was undergoing difficult times due to the record high cost of fuel, electricity, coal and other raw materials that had increased the cost of production.
In that situation, “the prices of cement will continue to increase in the local market,” he said and urged the government to devise a policy which could help the cement industry to maintain exports.