Cement dispatches in Pakistan improve in August but fall MoM
Pakistan’s cement industry recorded a growth of five per cent YoY in total dispatches from 3.351Mt to 3.52Mt in August 2019. However, a reverse trend of 27.2 per cent was noted, when compared with the figure 4.838Mt in July 2020.
According to the breakdown released by All Pakistan Cement Manufacturers Association (APCMA), the local dispatches of cement in August 2020 increased by 4.8 per cent to 2.794Mt from 2.665Mt in August 2019 while exports registered an increase of 5.8 per cent, rising to 0.725Mt from 0.685Mt in the same month last year.
The north-based mills dispatched 2.493Mt of cement in the domestic market as compared to 2.347Mt in August 2019, reporting an increase of 6.3 per cent. Exports from the north were 0.211Mt, 8.5 per cent higher than the exports of 0.195Mt made during the same month last year.
Southern mills continued declining trends in the domestic market, dispatching only 0.301Mt of cement in August 2020, 5.6 per cent less compared to 0.319Mt in August 2019. However, exports from the south increased to 0.515Mt in August 2020 from 0.491Mt in last year August, depicting an increase of 4.8 per cent.
Meanwhile, Power Cement Ltd in the south of the country has informed that it started containerised clinker exports to several markets, including Bangladesh, Sri Lanka, Indian Ocean islands, east Africa, the Middle Eastern and China.
Cumulative performance in July-August 2020
Overall dispatches during the first two months of this fiscal have increased by 21.8 per cent, from 6.863Mt in August 2019 to 8.358Mt in August 2020. Domestic dispatches stood at 6.747Mt in July-August 2020, an increase of 19.5 per cent from 5.644Mt during the same period last year. Exports during the period under review registered a rise of 32.2 per cent, increasing to 1.611Mt from 1.218Mt in July-August 2019.
Grievance by APCMA
A representative of APCMA expressed concern that the jump in cement sales in July looks like a one-off phenomenon. "The industry was expecting that the momentum witnessed in July would continue, but an appreciable decline in domestic uptake and exports was disappointing," he added. The decline was mainly due to heavy rains and ritual holidays.
The APCMA spokesperson said that the industry is unable to understand why the impact of the construction package has not been felt in the south of the country. He appealed the government to minimise duties and taxes on cement sector to increase cement consumption.
