Pakistan’s cement dispatches jump by 4.63% in December 2023

ISLAMABAD: Cement dispatches increased by 4.63% or 4.06 million tons in December 2013, compared to 3.881 million tons dispatched during the same month of the last fiscal year.

According to the data released by the All Pakistan Cement Manufacturers Association, local cement dispatches by the industry during the month of December 2023 were 3.536 million tons, compared to 3.676 million tons in December 2022, showing a decline of 3.81%. However, export dispatches increased by a massive 155.85%, as volumes jumped from 205,061 tons in December 2022 to 524,656 tons in December 2023.

In December 2023, North-based cement mills dispatched 3.012 million tons of cement, almost flat compared to the 3.01 million tons dispatched in December 2022. On the contrary, south-based mills dispatched 1.048 million tons of cement during December 2023, representing a 20.50% increase compared to the dispatches of 0.87 million tons during December 2022.

North-based cement mills dispatched 2.936 million tons of cement in domestic markets in December 2023, showing a decline of 0.69% against the 2.956 million tons dispatched in December 2022. South-based mills dispatched 600,073 tons of cement in local markets during December 2023, which was 16.62% less compared to the dispatches of 719,721 tons during December 2022.

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Exports from North-based mills increased by 39.58%, with quantities rising from 54,427 tons in December 2022 to 75,967 tons in December 2023. Exports from the South also increased by a massive 197.87% to 448,689 tons in December 2023 from 150,634 tons during the same month last year.

During the first six months of the current fiscal year, total cement dispatches (domestic and exports) were 23.876 million tons, which is 9.71% higher than the 21.764 million tons dispatched during the corresponding period of the last fiscal year. Domestic dispatches during this period were 20.223 million tons, against 20.030 million tons during the same period last year, showing an increase of 0.97%. Export dispatches were substantially higher by 110.66%, with volumes increasing to 3.653 million tons during the first six months of the current fiscal year compared to 1.734 million tons exported during the same period of the last fiscal year.

North-based mills dispatched 16.772 million tons of cement domestically during the first six months of the current fiscal year, showing an increase of 1.52% compared to cement dispatches of 16.522 million tons during July to December 2022. Exports from the North increased by 33.40% to 771,173 tons during July to December 2023, compared with 578,074 tons exported during the same period last year. Total dispatches by North-based mills increased by 2.59% to 17.543 million tons during the first six months of the current financial year from 17.1 million tons during the same period of the last financial year.

Domestic dispatches by South-based mills during July to December 2023 were 3.451 million tons, showing a reduction of 1.62% compared to the 3.508 million tons of cement dispatched during the same period of the last fiscal year. Exports from the South, however, substantially increased by 149.29% to 2.882 million tons during July to December 2023, compared with 1.156 million tons exported during the same period last year. Total dispatches by South-based mills increased by 35.79% to 6.333 million tons during the first six months of the current financial year from 4.664 million tons during the same period of the last financial year.

A spokesman for the All Pakistan Cement Manufacturers Association expressed serious concerns over the negative growth in domestic dispatches over the last four months. “We are very hopeful that the government will speed up PSDP projects to increase cement demand and also address our operational problems. Two major issues currently being faced by the cement industry are related to the new Axle Load regime and the Track & Trace system. We have approached the concerned functionaries and expect to get a positive response,” he added.