Cement sector remained under financial pressure during the fiscal year 2011-12 due to increase in its input cost mainly, electricity, diesel, paper sack, gypsum and devaluation in Pak rupee. However, for the year 2011-2012, the industry's local cement dispatches were the highest ever in the history of the country.
Revealing the performance of the cement sector in the year 2011-12, Spokesman of All Pakistan Cement Manufacturers Association in a statement said that the local cement dispatches increased to record level of 23.947 million tons registering an increase of 8.84 percent. However the exports remained under pressure throughout the year and declined by 9.12 percent to 8.568 million tons. He said 2011-12 was the third straight year when the cement exports showed decline.
He further said that the cement sector added 3 million tons additional production capacity in the year 2011-12 as its total production capacity is increased by 7.23 percent to 44.217 million tons from 42.235 million tons in 2010-11. However, for the year 2011-12 its capacity utilisation remained under pressure due to sluggish export demand, non revival of construction sector in the country, lack of investment in housing sector and government inability to initiate mega projects.
He said that from the peak level of 10.752 million tons achieved in 2008-09 the export have now decreased to 8.568 million tons in the year 2011-2012 showing a decline of 20.4 percent. He said that hype created on trade with India has so far not been materialised and export in that market was only 0.605 million tons in 2011-12 which is well below the expectation of the cement sector.
Comments
Comments are closed.