LAHORE: The cement sector posted nominal growth in February 2021 as compared to February 2020 while export side continued declining trend as seen during last three months.
The sector posted growth of 1.98 percent in February 2021 as compared to February 2020. Total cement despatches during February 2021 were 4.577 million tons against 4.489 million tons despatched during the same month of last fiscal year.
According to the data released by All Pakistan Cement Manufacturers Association (APCMA), local despatches were 3.961 million tons in February 2021 compared to 3.735 million tons in February 2020, depicting a growth of 6.06 percent. Exports continued declining trend as seen during last three months. Total exports dropped by 18.24 percent from 753,444 tons in February 2020 to 616,030 tons in February 2021.
During February 2021, the North-based factories despatched 3.28 million tons cement locally showing an increase of 3.32 percent from 3.17 million tons in February 2020, while the South based mills despatched 683,384 tons cement for local consumption which was 21.49 percent higher than 562,501 tons cement despatched in February 2020.
Exports from North-based mills decreased by 7.71 percent to 186,595 tons in February 2021 from 202,181 tons in February 2020 whereas the exports from South decreased by 22.10 percent to 429,435 tons in February 2021 from 551,263 tons during the same month last year.
During the first eight months of this fiscal year, total cement despatches (domestic and exports) were 37.95 million tons that was 13.92 percent higher than 33.31 million tons cement despatched during the corresponding period of last fiscal year.
Local despatches increased by 15.51 percent during the first eight months period of current fiscal year 2020-2021 to 31.62 million tons from 27.37 million tons during same period of last fiscal year. Exports increased from 5.94 million tons during first eight months of last fiscal year to 6.33 million tons during same period of current fiscal year showing a growth of 6.62 percent.
During the first eight months of the current fiscal year, North-based mills despatched 26.82 million tons of cement for domestic consumption that was 15.29 percent higher compared to the despatches during the same period last fiscal that stood at 23.26 million tons. Exports from North were 1.63 million tons showing a decline of 9.83 percent over exports of 1.81 million tons during the same period of last fiscal year.
South-based mills despatched 4.79 million tons in the domestic market during the first eight months of current fiscal year which was 16.73 percent higher than 4.11 million tons despatched during the corresponding period of last fiscal year. The exports from South were 4.70 million tons registering an increase of 13.82 percent over exports of 4.13 million tons during the same period last year.
Nevertheless, APCMA representative said that the rising cost of electricity and coal have led to increase the cost of cement production, which is becoming difficult for the cement industry to absorb.
Copyright Business Recorder, 2021