Saba Javed

Pakistan’s cement despatches declined by 16.82% in November 2022, according to data released by All Pakistan Cement Manufacturers Association (APCMA).Total cement despatches in November 2022 were 4.009 million tons against 4.820 million tons despatched during the same month of 2021. Data shows that local cement despatches by the industry in November this year were 3.862 million tons compared to 4.125 million tons in November last year, showing a decline of 6.38%. Export despatches also declined by 78.76% from 695,779 tons in November 2021 to 147,757 tons in November 2022.

In November 2022, north-based cement mills despatched 3.267 million tons cement, showing a decline of 7.31% against 3.525 million tons in November 2021. South-based mills despatched 742,158 tons cement in November 2022, 42.71% less than 1.296 million tons in November 2021. North-based cement mills despatched 3.163 million tons in domestic market in November 2022, showing a decline of 8.83% against 3.470 million tons in November 2021. South-based mills despatched 698,225 tons cement in local market during the period under review, 6.60% higher 654,983 tons during the same period of the previous year.

According to data, exports from north-based mills increased by 87.97% from 55,234 tons in November 2021 to 103,824 tons in November 2022. Exports from south reduced by 93.14% to 43,933 tons in November 2022 from 640,545 tons during the same month last year. During the first five months of the current fiscal year, total cement despatches (domestic and exports) were 17.883 million tons, 21.78% lower than 22.861 million tons despatched during the corresponding period of last fiscal year.

Domestic despatches during this period were 16.354 million tons against 20.008 million tons during the same period of last year, showing a reduction of 18.26%. Export despatches were also 46.40% less as the volumes reduced to 1.529 million tons during the first five months of current fiscal year compared to 2.853 million tons exports during the same period of last fiscal year. North-based mills despatched 13.566 million tons of cement domestically during the first five months of the current fiscal year, showing a reduction of 19.18% compared to 16.786 million tons during July-November 2021.

Exports from north increased by 1.48% to 523,647 tons during July-November 2022 from 516,003 tons exported during the same period last year. Total despatches by north-based mills reduced by 18.57% to 14.089 million tons during the first five months of the current financial year from 17.302 million tons during the same period of last financial year. Domestic despatches by south-based mills during July-November 2022 were 2.788 million tons, showing a reduction of 13.47% over 3.222 million tons despatched during the same period of last fiscal year.

Exports from south declined by 56.97% to 1.005 million tons during July-November 2022 compared to 2.337 million tons exported during the same period of last year. Data shows that total despatches by south-based mills reduced by 31.76% to 3.794 million tons during the first five months of the current fiscal year from 5.559 million tons during the same period of last fiscal year. A spokesman for APCMA mentioned that the State Bank of Pakistan (SBP) must allow opening the letter of credits (LCs) for renewable energy projects needed to reduce the energy costs and move away from expensive imported fuel.

“With the start of the winter season, gas supplies are also facing interruptions, compelling us to use expensive furnace oil, thereby increasing the cost of production,” he said. The spokesman said the uncertain political situation prevailing in the country for months and its economic impacts are resulting in sluggish demand and devaluation of currency. He said these factors need to be addressed in order to bring the industry out from these difficult times.

Credit : Independent News Pakistan-WealthPk