Pakistan sees drop in 1HFY23-24 dispatches
Pakistan's cement dispatches increased by 4.6 per cent in December 2023 to 4.06Mt against 3.881Mt dispatched in December 2022. Out of this total, according to the data released by All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches were 3.536Mt compared to 3.676Mt in December 2022, showing a decline of 3.8 per cent. However, more positive news came from the overseas markets as export dispatches increased by a considerable 155.9 per cent as the volumes jumped from 205,061t in December 2022 to 524,656t in December 2023.
A spokesman of APCMA expressed serious concerns over the negative growth in domestic dispatches over the last four months. The association hopes the government will speed up its Public Sector Development Programme projects to increase cement demand and address operational problems. Two major issues currently being faced by the cement industry are related to the new axle load regime and the track and trace system. APCMA said it has contacted the concerned functionaries and expects a positive response.
North-south dispatches
In December 2023 cement mills based in the north of the country dispatched 3.012Mt cement against 3.01Mt dispatches in December 2022, showing almost flat growth. On the contrary, south-based mills dispatched 1.048Mt cement during December 2023, which was 20.5 per cent higher than the dispatches of 0.87Mt during December 2022.
North-based cement mills dispatched 2.936Mt cement in domestic markets in December 2023, showing a decline of 0.7 per cent against 2.956Mt dispatches in December 2022. South-based mills dispatched 600,073t of cement in local markets during December 2023, which was 16.6 per cent less compared to the dispatches of 719,721t during December 2022.
Exports from north-based mills increased by 39.6 per cent as the quantities increased from 54,427t in December 2022 to 75,967t in December 2023. Exports from the south also increased by 197.9 per cent to 448,689t in December 2023 from 150,634t during the same month last year.
Cumulative dispatches in 1HFY23-24
During the 1HFY23-24 (July-December 2023), total cement dispatches (domestic and exports) were 23.876Mt, which is 9.7 per cent higher than the 21.764Mt dispatched during the corresponding period of the previous fiscal year. Domestic dispatches during this period were 20.223Mt against 20.030Mt the previous year, showing an increase of one per cent. Export dispatches were substantially higher by 110.66 per cent as the volumes increased to 3.653Mt during the 1HFY23-24 compared to 1.734Mt exports in the 1HFY22-23.
North-based mills dispatched 16.772Mt cement to the domestic market during the 1HFY23-24, showing an increase of 1.5 per cent to cement dispatches of 16.522Mt from July to December 2022. Exports from the north increased by 33.4 per cent to 771,173t during July to December 2023 compared with 578,074t exported during the same period in the previous year. Total dispatches by north-based mills increased by 2.6 per cent to 17.543Mt in the 1HFY23-24 from 17.1Mt in the previous financial year.
Domestic dispatches by south-based mills from July to December 2023 were 3.451Mt, showing a reduction of 1.6 per cent over 3.508Mt cement dispatched during the last fiscal year. However, exports from the south substantially increased by 149.3 per cent to 2.882Mt from July to December 2023 compared with 1.156Mt exported during the same period last year. Total dispatches by southern mills increased by 35.8 per cent to 6.333Mt during the first six months of the current financial year from 4.664Mt in the previous financial year.
