All Pakistan Cement Manufacturers Association (APCMA) has released local and export dispatch data for June and July 2022-June 2023 (FY22-23). It shows a YoY decline of 22.8 per cent in June 2023 when total cement dispatches reached 4.063Mt compared to 5.264Mt in the same month of the previous year. Of this total, local cement dispatches in June 2023 were 3.487Mt compared to 4.979Mt in June 2022, marking a decline of 30 per cent. Export dispatches, meanwhile, increased by 102.6 per cent as the volumes rose from 284,471t in June 2022 to 576,309t in June 2023.

Usama Rauf, investment analyst at AKD Securities, believes that the 23 per cent decline in cement dispatches in June 2023 was primarily due to pre-emptive buying in the previous month negatively impacting demand. However, healthy export numbers, especially from the south, are being driven by declining coal prices, making exports more viable. Overall, 16 per cent negative growth in FY22-23 is attributable to inflation driving up construction costs and limited government development spending due to fiscal constraints.

According to the APCMA, the government should facilitate export-oriented industries so that it can regain momentum in the international markets and the country can come out of the difficult times. Boosting exports is said to play a pivotal role in the revival of the economy. He added that signing a standby agreement with the IMF is only an interim solution, and Pakistan must use its resources to build a stronger country.

In June 2023 north-based cement mills dispatched a total of 2.95Mt of cement, showing a decline of 30.1 per cent against 4.22Mt in June 2022. South-based mills dispatched 1.113Mt of cement during June 2023, marking 6.6 per cent growth on the 1.04Mt seen in June 2022.

North-based cement mills dispatched 2.855Mt of cement in domestic markets in June 2023, showing a decline of 30.8 per cent against 4.122Mt in June 2022. South-based mills dispatched 632,093t of cement in local markets during June 2023, 26.2 per cent down on the 856,863t dispatched in June 2022. Exports from north-based mills dropped by 1.9 per cent as the quantities reduced from 97,163t in June 2022 to 95,333t in June 2023. Exports from the south increased by 156.8 per cent to 480,976t in June 2023, compared to 187,308t in the same month a year earlier.

Full-year FY22-23

In FY22-23 total cement dispatches (domestic and exports) were 44.579Mt, 15.7 per cent down on the 52.891Mt dispatched in FY21-22. Domestic dispatches were 40.013Mt against 47.635Mt last year, showing a reduction of 16 per cent YoY. Export dispatches were also 13.1 per cent lower as volumes fell to 4.566Mt during FY21-22 compared to 5.256Mt in the previous fiscal year.

North-based mills dispatched 32.776Mt of cement domestically during the FY22-23, marking a reduction of 16.9 per cent from cement dispatches of 39.439Mt in FY21-22. Exports from the north advanced 17.4 per cent to 1.069Mt during FY22-23, compared to 911,065t exported during the last fiscal year. Total dispatches by north-based mills declined by 16.1 per cent to 33.846Mt during FY22-23 versus 40.35Mt during the previous fiscal year.

Domestic dispatches by south-based mills in FY22-23 were 7.237Mt, down 11.7 per cent on the 8.196Mt dispatched during the last fiscal year. Exports from the south declined by 19.5 per cent to 3.496Mt during FY22-23 compared with 4.345Mt exported during the last fiscal year. Total dispatches by south-based mills contracted by 14.4 per cent to 10.734Mt in FY22-23, versus 12.541Mt in the last fiscal year.

Published under Cement News