Local Cement Sales Fall Again in September, Exports Surge 

Local cement despatches declined by 18 percent in September 2024 on a year-on-year basis owing to low demand, but exports surged by over 71 percent.  Total Cement despatches during September 2024 were 3.540 million tons against 3.751 million tons despatched during the same month of last fiscal year, down 5.6 percent.  According to the data released by All Pakistan Cement Manufacturers Association, local cement despatches by the industry during September 2024 were 2.650 million tons compared to 3.233 million tons in September 2023, showing a decline of 18.02 percent.   On the export side, despatches increased by 71.52 percent as the volumes jumped from 570,692 tons in September 2023 to 978,871 tons in September 2024.  In September 2024, North based cement mills despatched 2.407 million tons cement showing a decline of 12.78 percent against 2.759 million tons despatches in September 2023. South based mills despatched 1.246 million tons cement during September 2024, up 14.23 percent compared to the despatches of 0.992 million tons during September 2023.  North based cement mills despatched 2.222 million tons of cement in domestic markets in September 2024 showing a decline of 15.51 percent against 2.630 million tons despatches in September 2023. South based mills despatched 470,931 tons of cement in local markets during September 2024 that was 28.95 percent less compared to the despatches of 662,786 during September 2023.  Exports from North based mills increased by 42.93 percent as the quantities increased from 142,226 tons in September 2023 to 203,280 tons in September 2024. Exports from the South also increased by 81.02 percent to 775,591 tons in September 2024 from 428,466 tons during the same month last year.  During the first three months of the current fiscal year, total cement despatches (domestic and exports) were 10.269 million tons, down 13.59 percent compared to 11.885 million tons despatched during the corresponding period of last fiscal year.  Domestic despatches during this period were 8.130 million tons against 10.133 million tons during the same period last year showing a reduction of 19.78 percent. Export despatches showed 22.19 percent growth as the volumes increased to 2.140 million tons during the first three months of the current fiscal year compared to 1.751 million tons exports made during the same period of last fiscal year.  North based Mills despatched 6.863 million tons cement domestically during the first three months of current fiscal year showing a reduction of 17.65 percent compared to despatches of 8.333 million tons during July-September 2023. Exports from the North increased by 18.42 percent to 507,101 tons during July-September 2024 compared with 428,235 tons exported during the same period last year. Total despatches by North based Mills reduced by 15.88 percent to 7.370 million tons during the first three months of the current financial year from 8.762 million tons during the same period of last financial year.  Domestic despatches by South based Mills during July-September 2024 were 1.267 million tons showing reduction of 29.63 percent over 1.8 million tons of cement despatched during the same period of last fiscal year. Exports from South increased by 23.42 percent to 1.632 million tons during July-September 2024 compared with 1.323 million tons exported during the same period last year. Total despatches by South based Mills reduced by 7.16 percent to 2.9 million tons during the first three months of the current financial year from 3.123 million tons during the same period of last financial year.  A spokesman of All Pakistan Cement Manufacturers Association mentioned that it is the fourth straight month in which we are experiencing decline in cement despatches.   He expressed disappointment at the trend and said that industry is on the verge of a crisis due to continuous downfall in its capacity utilization.   “If the government gives relief in duties and taxes to curb the cost of production, it can boost the domestic demand and will also make our product competitive in international markets, enabling us to tap more opportunities to earn foreign exchange for the country,” he added.