LAHORE: Cement despatches declined by 12.58% in the month of June 2024, as the total despatches were recorded at 3.552 million tons during the last month against 4.063 million tons despatched during the same month of last fiscal year.
Data released by All Pakistan Cement Manufacturers Association (APCMA) here Tuesday revealed that the local cement despatches by the industry during the month of June 2024 were 3.079 million tons compared to 3.487 million tons in June 2023, showing a decline of 11.69%. Exports despatches also declined by 17.95% as the volumes reduced from 576,309 tons in June 2023 to 472,865 tons in June 2024.
In June 2024, North based cement mills despatched 2.723 million tons cement showing a decline of 7.71% against 2.950 million tons despatches in June 2023. South based mills despatched 829,582 tons cement during June 2024 that was 25.47% less compared to the despatches of 1.113 million tons during June 2023.
North based cement mills despatched 2.614 million tons cement in domestic markets in June 2024 showing a decline of 8.45% against 2.855 million tons despatches in June 2023. South based mills despatched 465,578 tons cement in local markets during June 2024 that was 26.34% less compared to the despatches of 632,093 during June 2023.
Exports from North based mills increased by 14.19% as the quantities increased from 95,333 tons in June 2023 to 108,861 tons in June 2024. Exports from South reduced by 24.32% to 364,004 tons in June 2024 from 480,976 tons during same month last year, the data shows.
During the fiscal year ended 30th June, 2024, total cement despatches (domestic and exports) were 45.291 million tons that is 1.60% more than 44.579 million tons despatched during last fiscal year. Domestic despatches in this period were 38.181 million tons against 40.013 million tons during last year showing a reduction of 4.58%. Export despatches showed massive increase by 55.71% as the volumes jumped to 7.110 million tons during the fiscal year ended 30th June, 2024 compared to 4.566 million tons exports done during last fiscal year.
The All Pakistan Cement Manufacturers Association spokesman emphasized that domestic market is pivotal for cement industry and decline in its uptake calls for serious attention from policy makers. He said that the situation calls for lowering duties and taxes on cement, but on the contrary, the government has increased excise duty from Rs.2000/- per ton to Rs.4,000/- per ton in budget 2024-25 that is likely to dampen the demand further. Cement is not a luxury item but is a basic necessity and government must take measures to reduce the construction cost, to make it affordable for the masses, he further added.
Copyright Business Recorder, 2024
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