In a recent turn of events, the cement industry in Pakistan has faced a decline in sales, with October 2023 showing a notable decrease of 5.78 percent compared to the same month in the previous fiscal year.
The Numbers Unveiled
Total cement dispatches during October 2023 amounted to 4.007 million tons, as opposed to the 4.253 million tons dispatched during the corresponding month of the previous fiscal year. These figures, released by the All Pakistan Cement Manufacturers Association, shed light on the industry’s performance during this period.
Local Dispatches Suffer a Setback
The data reveals that local cement dispatches during October 2023 by the industry were 3.292 million tons, a significant decrease from the 3.890 million tons recorded in October 2022, marking a decline of 15.38 percent. In contrast, exports experienced a substantial surge, increasing by a remarkable 97.33 percent, with volumes climbing from 362,350 tons in October 2022 to 715,028 tons in October 2023.
In a more detailed analysis, it’s evident that North-based cement mills dispatched 2.903 million tons of cement during October 2023, which represents an 11.35 percent decline from the 3.275 million tons dispatched in October 2022. South-based mills, on the other hand, dispatched 1.104 million tons of cement during October 2023, marking a 12.90 percent increase compared to the 0.978 million tons dispatched in October 2022.
Domestic vs. Export Dispatches
The regional trend continues in the domestic markets, with North-based mills dispatching 2.780 million tons of cement in October 2023, reflecting an 11.57 percent decline compared to the 3.143 million tons in October 2022. South-based mills dispatched 512,320 tons of cement in local markets during October 2023, which is 31.41 percent less compared to the dispatches of 746,927 tons during October 2022.
Exports from North-based mills experienced a decline of 6.16 percent, with quantities reducing from 131,111 tons in October 2022 to 123,029 tons in October 2023. In contrast, exports from the South surged significantly by 156.01 percent, reaching 591,999 tons in October 2023 from 231,239 tons during the same month the previous year.
An Overview of the Fiscal Year
During the first four months of the current fiscal year, total cement dispatches, considering both domestic and exports, reached 15.892 million tons, showcasing a growth of 14.55 percent compared to the 13.874 million tons dispatched during the same period in the last fiscal year. Domestic dispatches witnessed a 7.47 percent increase, with 13.426 million tons during this period, compared to 12.492 million tons in the previous fiscal year. Export dispatches also recorded a substantial 78.53 percent increase, totaling 2.466 million tons in the first four months of the current fiscal year, compared to 1.381 million tons during the same period last year.
North-based Mills dispatched 11.113 million tons of cement domestically during the first four months of the current fiscal year, marking a 6.83 percent increase over the 10.402 million tons dispatched during July-October 2022. Exports from the North also increased by 31.31 percent, reaching 551,264 tons during July-October 2023, compared to 419,823 tons exported during the same period the previous year. In total, dispatches by North-based Mills increased by 7.78 percent to 11.664 million tons during the first four months of the current financial year, compared to 10.822 million tons during the same period in the last financial year.
The South-Based Story
Domestic dispatches by South-based Mills during July-October 2023 reached 2.312 million tons, marking a 10.65 percent increase over the 2.090 million tons of cement dispatched during the same period in the previous fiscal year. Exports from the South also increased by a substantial 99.15 percent, reaching 1.915 million tons during July-October 2023, compared to 0.962 million tons exported during the same period the previous year. In total, dispatches by South-based Mills increased by 38.54 percent to 4.227 million tons during the first four months of the current financial year, compared to 3.051 million tons during the same period in the last financial year.