LAHORE: Cement despatches increased by 7.83% in May 2024 as the total despatches were registered at 4.275 million tons against 3.965 million tons despatched during the same month of last fiscal year.
According to the data released by All Pakistan Cement Manufacturers Association here on Tuesday, local cement despatches by the industry during the month of May 2024 were 3.357 million tons compared to 3.432 million tons in May 2023, showing a decline of 2.17%. Exports despatches however increased by massive 72.16% as the volumes increased from 533,215 tons in May 2023 to 917,962 tons in May 2024.
In May 2024, North-based cement mills despatched 2.915 million tons cement showing an increase of 1.36% against 2.876 million tons of despatches in May 2023. South-based mills despatched 1.359 million tons of cement during May 2024 which was 24.91% more compared to the despatches of 1.089 million tons during May 2023.
North-based cement mills dispatched 2.753 million tons cement in domestic markets in May 2024 showed a decline of 0.44% against 2.765 million tons despatches in May 2023. South-based mills despatched 604,672 tons cement in local markets during May 2024 that was 9.33% less compared to the despatches of 666,867 during May 2023.
Exports from North-based mills increased by 46.11% as the quantities increased from 111,511 tons in May 2023 to 162,929 tons in May 2024. Figures from South also show increase in exports by 79.04% to 755,033 tons in May 2024 from 421,704 tons during the same month last year.
During the first eleven months of current fiscal year, total cement despatches (domestic and exports) were 41.730 million tons that is 3.00% higher than 40.516 million tons despatched during the corresponding period of the last fiscal year.
Domestic Deliveries during this period were 35.097 million tons, compared to 36.526 million tons during the same period last year showing a reduction of 3.91%. Export despatches were 66.26% higher as the volumes increased to 6.633 million tons during the first eleven months of the current fiscal year, compared to 3.990 million tons of exports done during the same period of the last fiscal year.
All Pakistan Cement Manufacturers Association (APCMA) spokesperson said that a healthy rise in exports is a good omen, however, the industry largely depends on domestic markets to reach its potential. It is a matter of serious concern that the cement sector continues to post negative growth in local despatches for the 9th straight month. We are very hopeful that the government will give due attention to the concerns of the cement industry in the upcoming budget.
“We have an almost one-third idle capacity, which if utilized, can bring our operational costs down and provide relief to the end consumers,” he concluded.
Copyright Business Recorder, 2024
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