Pakistan records a 21% decline in cement dispatches in 1HFY22-23

The negative trend in cement dispatches in Pakistan has continued in the last few months. The latest data for 1HFY22-23 and December 2022 show the sector has been affected by a slowdown in the local construction industry and unviable exports. Pakistan’s total cement deliveries (domestic and exports) were 21.764Mt during 1HFY22-23, which is 20.7 per cent lower than 27.456Mt dispatched during 1HFY21-22. Out of this total, domestic volumes were 20.03Mt against 24.065Mt during the same period last year, showing a reduction of 16.8 per cent. Export volumes were also 48.9 per cent less at 1.734Mt during 1HFY22-23 compared to exports of 3.391Mt during the same period of last fiscal year.

A spokesman of the All Pakistan Cement Manufacturers Association (APCMA) said the current economic turmoil has badly impacted cement consumption. He said inflation has played havoc with the pockets of the consumers. New construction projects, including housing, are few, while the routine maintenance of residences has been postponed. In terms of exports, the Russia-Ukraine war has hampered cement exports.

December 2022
During December 2022 alone, total cement dispatches declined by 15.6 per cent to 3.881Mt against 4.595Mt delivered in the year-ago period. Of this total, domestic cement volumes in December 2022 were 3.676Mt compared to 4.057Mt in December 2021, representing a decline of 9.41 per cent. Export volumes also decreased by 61.88 per cent as they were down from 538,002t in December 2021 to 205,061t in December 2022.

North-based cement mills supplied 3.01Mt cement, showing a YoY decline of 11.6 per cent against 3.405Mt in December 2021. South-based mills delivered 870,355t cement in December 2022, 26.9 per cent less than the dispatches of 1.19Mt in December 2021.

North-based cement mills delivered 2.956Mt cement to domestic markets in December 2022, showing a decline of 12.5 per cent against 3.377Mt of dispatches in December 2021. South-based mills supplied 719,721t of cement to local markets, which was 5.9 per cent higher than the dispatches of 679,868t in December 2021. 

Exports from northern mills increased by 95.2 per cent as the quantities increased from 27,885t in December 2021 to 54,427t in December 2022. Exports from the south fell by 70.5 per cent to 150,634t in December 2022 from 510,117t during the same month last year.

Cumulative dispatches 1HFY22-23
North-based mills dispatched 16.522Mt cement domestically in the 1HFY22-23, showing a reduction of 18.1 per cent from 20.163Mt during 1HFY22. Exports from the north increased by 6.3 per cent to 578,074t during July-December 2022 compared with 543,888t exported during the same period in the previous year’s equivalent period. Total deliveries by north based mills decreased by 17.4 per cent to 17.1Mt during first six months of the current financial year from 20.707Mt during the same period of the previous financial year.

Domestic dispatches by southern mills during July-December 2022 were 3.508Mt, showing a reduction of 10.1 per cent over 3.902Mt cement dispatched during the last fiscal year. Exports from the south declined by 59.4 per cent to 1.156Mt during July-December 2022 compared with 2.847Mt exported during the previous year. Total dispatches by southern mills dropped by 30.9 per cent to 4.664Mt during the first six months of the current financial year from 6.749Mt during the last financial year.