Cement sector records 4.19 percent domestic growth in July

Cement sector showed Healthy domestic growth trend as it despatched 1.8 million tons to domestic markets during July 2015 as compared to 1.73 million tons during same month of last year showing an increase of 4.19 percent. Nevertheless, exports during July 2015 were 465,000 tons against 503,000 tons during July 2014, showing reduction of 7.45 percent. Total despatches during July 2015 were 2.26 million tons as compared to 2.23 million tons during same month of last year showing an increase of 1.56 percent, sources disclosed in the cement industry here on Saturday.
Good off take was observed in domestic despatches during July 2015 despite heavy rains that seriously affected construction activities in many parts of the country. Domestic despatches in North Zone were 1.520 million tons (July 2014: 1.42 million tons) and in South Zone were 0.279 million tons (July 2014: 0.309 million tons). Sources said export sector, however, continued to disappoint.
Exports from North zone were 274,000 tons while exports from South zone were 192,000 tons. In July 2014 the cement exports from North zone were 295,000 tons and from South zone were 208,000 tons. While exports to Afghanistan declined to 178,000 tons during July 2015 as compared to 184,000 tons during July 2014, sources added. Major decline was observed in exports to India that showed substantial reduction to 43,000 tons during July 2015 against 63,000 tons during same month last year ie downfall of around 32 percent.
Commenting on the situation, spokesman of All Pakistan Cement Manufacturers Association (APCMA) claimed that exports declined mainly because of non-tariff barriers erected by the Indian authorities and influx of Iranian cement in Afghanistan. He said the government policy on exports needs revamping to boost exports. He said smuggling of cement through Pak-Iran border possess a continuous threat for the cement industry.
Spokesman further added that APCMA has expressed reservations on various tax measures announced in federal budget 2015-16 that would hurt investors' sentiments in general and will particularly burden cement consumers in the country. These issues in particular are related to three percent super tax, amendments introduced in Section 8 of the Sales Tax Act, 1990 for input tax adjustment and increase in import duty on coal from 1pc to 5pc.
He emphasised that the industry is facing tremendous problems due to high power tariffs, axle load restrictions, power outages etc and expects effective steps from government for reducing the cost of operations in order to make the product competitive and to increase its existence in global markets.