Pakistan: Cement Dispatches Decline 19.22%

February 2024 saw a significant 19.22% drop in cement dispatches, with both local and export markets experiencing a notable contraction, according to data from the All Pakistan Cement Manufacturers Association.

Pakistan: Cement Dispatches Decline 19.22%
Photo by Sohail Chaudhry / Unsplash

The cement sector in Pakistan faced a challenging February 2024, recording a sharp 19.22% decline in total dispatches, which amounted to 3.259 million tonnes (MT), down from 4.035 MT in the same month of the previous fiscal year. This downturn was observed across both local and export markets, signaling a contraction within the industry.

Local dispatches in February 2024 experienced a significant decrease of 20.23%, standing at 2.863 MT compared to February 2023. Exports also saw a downturn, decreasing by 11.02% from 444,962 tonnes in February 2023 to 395,935 tonnes in February 2024. Cement mills based in the northern region of Pakistan dispatched 2.433 MT, showing a 19.26% decrease from February 2023, while those in the southern region dispatched 826,085 tonnes, marking a 19.08% decline over the same period.

Despite the overall decrease, exports from North-based mills witnessed a 47.40% increase, totaling 95,393 tonnes in February 2024. However, exports from South-based mills experienced a 20.96% decrease, amounting to 300,542 tonnes during the same period.

Over the first eight months of the current fiscal year, total cement dispatches saw a modest increase of 2.52% compared to the previous fiscal year, reaching 30.555 MT. However, domestic dispatches during this period decreased by 4.22% to 26.059 MT, while exports significantly increased by 73.10%, totaling 4.496 MT.

The spokesperson for the All Pakistan Cement Manufacturers Association expressed hope for the new government to introduce industry-friendly policies and swiftly address critical issues facing the sector. The association is urging the government to expedite pending public sector development projects to provide relief to the construction industry and its associated workforce.

Source: The Express Tribune