Local Pakistan cement dispatches contract while exports sustain levels

In October 2023 Pakistan's cement industry faced a decline in local dispatches due to the constraints in the domestic market, while exports remained steady owing to the potential for overseas revenue. According to data from the All Pakistan Cement Manufacturers Association (APCMA), total dispatches fell by 5.8 per cent to 4.007Mt in October 2023, compared to 4.253Mt dispatched during the same period in the previous year. The APCMA report indicates that local cement deliveries declined to 3.292Mt in October 2023 from 3.89Mt in October 2022, a decrease of 15.4 per cent. However, exports increased significantly by 97.3 per cent as the volumes rose from 362,350t in October 2022 to 715,028t in October 2023.

AKD Securities Ltd believed that cement sales witnessed a decline of 2.6 per cent MoM and 5.8 per cent YoY in October 2023, to 4.01Mt. This decrease can be attributed to a general slowdown in construction activity impacted by rising costs. Overall, in 4MFY23-24 total cement deliveries reached 15.9Mt, reflecting a 14.5 per cent YoY increase, primarily due to construction activities being hampered by floods during the first two months of the last fiscal year.

North-South dispatches in October
In October 2023 northern cement mills dispatched 2.903Mt of cement, showing a decline of 11.4 per cent against 3.275Mt in October 2022. Southern mills dispatched 1.104Mt of cement during October 2023, 12.9 per cent more than the 0.978Mt during October 2022.

Northern cement mills supplied 2.78Mt of cement in domestic markets in October 2023, showing a decline of 11.6 per cent against 3.143Mt in October 2022. South-based mills delivered 512,320t of cement in local markets during October 2023, which was 31.4 per cent less than the 746,927t during October 2022.

Exports from northern mills declined by 6.2 per cent as the quantities reduced from 131,111t in October 2022 to 123,029t in October 2023. However, exports from the south increased by 156 per cent to 591,999t in October 2023 from 231,239t during the same month last year.

Cumulative dispatches in 4MFY23-24
During the first four months of the current fiscal year (July-October 2023), total cement dispatches were 15.892Mt, 14.6 per cent more than the 13.874Mt dispatched during 4MFY22-23. Domestic dispatches during 4MFY23-24 were 13.426Mt, against 12.492Mt during 4MFY22-23, showing an increase of 7.5 per cent. Exports also increased by 78.5 per cent to 2.466Mt in the 4MFY23-24, compared to 1.381Mt of exports in the last fiscal year.

Northern mills supplied 11.113Mt of cement domestically in the 4MFY23-24, showing an increase of 6.8 per cent from the 10.402Mt in July-October 2022. Exports from the north increased by 31.3 per cent to 551,264t in July-October 2023 compared with 419,823t exported during the same period last year. Total dispatches by northern mills increased by 7.8 per cent to 11.664Mt in the 4MFY23-24 from 10.822Mt in the FY22-23.

Domestic deliveries by southern mills during July-October 2023 were 2.312Mt, showing an increase of 10.6 per cent when compared with 2.09Mt supplied in the year-ago period. Exports from the south increased by 99.2 per cent to 1.915Mt during July-October 2023 compared with 0.962Mt exported during the same period last year. Total deliveries by southern mills increased by 38.5 per cent to 4.227Mt during the first four months of the current financial year, from 3.051Mt during the last financial year.