September is a blessing for Pakistan cement producers

All Pakistan Cement Manufacturers Association (APCMA) has released September 2019 data, which indicates industry posted real growth as the total dispatches increased by 11.5 per cent compared with the corresponding period of last year, with both local consumption and exports increasing in double-digits.
 
Dispatches advanced to 4.27Mt when compared with 3.829Mt dispatched in September 2018. Out of this total, domestic consumption reached 3.472Mt this September, while it was 3.114Mt during the same month last year. Exports in the month also increased to 0.798Mt last month, as compared to 0.715Mt in September 2018, an increase of 11.7 per cent.
 
In a major change this financial year, consumption in the northern region of the country has started rising and in September 2019 the local demand increased by 22.4 per cent from 2.473Mt in September 2018 to 3.027Mt last month. The buoyant southern region remained subdued in September 2019 with 0.446Mt local dispatches, as compared 0.641Mt in September 2018, depicting a decline of 30.5 per cent.
 
July-September 2019
On cumulative basis, in July-September 2019  the total cement dispatches amounted to 11.133Mt compared with the first quarter of last fiscal, when cement dispatches were 10.855Mt. This comes to a surge of merely 2.6 per cent in total dispatches.
 
Local dispatches in the 3MFY19-20 were almost the same as compared to the same period last year, rising to 9.116Mt from 9.063Mt in the 3MFY18-19. Exports however registered a healthy increase of 12.5 percent as they rose to 2.017Mt in the first quarter of this fiscal from 1.792Mt in the same period last year.
 
While appreciating the revival of cement consumption in the northern part of the country, a APCMA spokesman expressed concern at steep decline in uptake of cement in the southern region. He said the lopsided consumption pattern has benefitted the plants located in the northern region while those operating in the south have entered the red zone as 32.1 per cent decline in uptake is extremely high and alarming during the first quarter of this fiscal.
 
"Government should start the work on announced housing projects that will have a positive impact on uptake of construction materials including cement and create jobs for skilled and unskilled labour," he added.
 
He also appealed to the government to support the industry by minimising duties and taxes on cement in order to increase cement consumption.