Exports of cement from Pakistan rise during July 20

All Pakistan Cement Manufacturers Association (APCMA) has issued official dispatch data for July 2020, adding that the new fiscal has started well for the cement sector as the shipments increased by 37.8 per cent from 3.512Mt in July 2019 to 4.838Mt in July 2020 on the back of buoyant export and domestic demand. This is a significant improvement on the two per cent growth in dispatches in FY19-20, which was driven by export demand, according to APCMA. Domestic demand slipped by 0.9 per cent in the FY19-20.
 
According to the data released by APCMA, the local uptake of cement in July 2020 increased by 32.7 per cent to 3.953Mt from 2.979Mt in July 2019 while exports registered a more impressive increase of 66.1 per cent, rising to 0.885Mt from 0.533Mt in the same month last year.
 
North zone performance
The north zone, as usual, led total dispatch growth supported by domestic demand, which expanded by 38.9 per cent to 3.435Mt, compared with 2.474Mt cement dispatches in July 2019. The trend in exports from the north was disappointing at only 0.123Mt, a decline of 46.9 per cent when compared with exports of 0.231Mt in the previous year. The fall has been attributed to the trade stand-off with India and slow construction activities in Afghanistan.
 
South zone dispatches
Southern mills dispatched 0.518Mt of cement in the domestic market, a nominal increase of 2.4 per cent over the dispatches of 0.506Mt in July 2019. However, southern mills made up for slow growth in the domestic market with a rise of 153 per cent in exports to 0.762Mt – 1.5 times the local sales of cement in the south. In July 2019 cement exports from the south were only 0.301Mt.
 
An APCMA spokesperson said that the increase in cement dispatches last month gave a much-needed boost to the industry after a disappointing fiscal. He added that the increasing trend in fuel and energy prices has severely impacted the freight cost and overall cost of production.
 
"The government must focus on public sector development projects and announced housing schemes to boost construction activities so that the employment and investment in the cement and allied industries can be safeguarded," he added.