ISLAMABAD: The cement industry witnessed a significant decline in term of despatches, which plummeted by 22.80% in June, the last month of fiscal year 2022-23.
The total cement despatches during June 2023 amounted to 4.063 million tons, compared to 5.264 million tons dispatched during the same month of the previous fiscal year.
According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement shipments by the industry in June 2023 were 3.487 million tons, showing a decline of 29.97% from 4.979 million tons in June 2022. However, there was a notable increase of 102.59% in export despatches, with volumes rising from 284,471 tons in June 2022 to 576,309 tons in June 2023.
In June 2023, cement companies from northern region dispatched 2.950 million tons of cement, indicating a decline of 30.08% compared to 4.220 million tons dispatched in June 2022. On the other hand, the companies in the southern region despatched 1.113 million tons of cement during June 2023, which was 6.60% higher than the despatches of 1.044 million tons in June 2022.
In terms of domestic markets, the northern region dispatched 2.855 million tons of cement in June 2023, experiencing a decline of 30.75% from 4.122 million tons in June 2022. Meanwhile, mills in the southern region dispatched 632,093 tons of cement in local markets during June 2023, reflecting a decrease of 26.23% compared to the despatches of 856,863 tons in June 2022. Exports from mills in the northern region decreased by 1.88%, with quantities reducing from 97,163 tons in June 2022 to 95,333 tons in June 2023. However, exports from mills in the southern region increased by 156.78% to 480,976 tons in June 2023 from 187,308 tons during the same month last year.
For the fiscal year 2022-23, the total cement despatches (domestic and exports) were 44.579 million tons, marking a 15.71% decline compared to 52.891 million tons dispatched in the previous fiscal year. Domestic shipments accounted for 40.013 million tons, a reduction of 16.00% from 47.635 million tons in the previous year. Export despatches also decreased by 13.13%, with volumes reaching 4.566 million tons during the fiscal year 2022-23, compared to 5.256 million tons in the previous fiscal year.
In the northern region, companies dispatched 32.776 million tons of cement domestically during the fiscal year 2022-23, representing a reduction of 16.89% compared to the despatches of 39.439 million tons in the previous fiscal year. However, exports from the northern region increased by 17.41% to 1.069 million tons during the fiscal year 2022-23, compared to 911,065 tons in the previous fiscal year. Overall, total despatches by mills in the northern region decreased by 16.12% to 33.846 million tons during the fiscal year 2022-23 from 40.350 million tons in the previous fiscal year.
In the southern region domestic despatches by companies during the fiscal year 2022-23 amounted to 7.237 million tons, showing a reduction of 11.70% from the 8.196 million tons dispatched in the previous fiscal year. Exports from the southern region declined by 19.53% to 3.496 million tons during the fiscal year 2022-23, compared to 4.345 million tons in the previous fiscal year. Overall, total despatches by mills in the southern region decreased by 14.41% to 10.734 million tons during the fiscal year 2022-23 from 12.541 million tons in the previous fiscal year.
A spokesperson for the All Pakistan Cement Manufacturers Association emphasized the need for the government to facilitate export-oriented industries, as this will help regain momentum in the international markets and contribute to revival of the national economy. Boosting exports will play a pivotal role in overcoming challenges faced during these difficult times. The signing of a standby agreement with the International Monetary Fund (IMF) is also essential in this regard.
