Cement sales in Pakistan encountered a 5.78% decline during the month, painting a mixed picture for the industry. According to data released by the All Pakistan Cement Manufacturers Association, total cement dispatches for October 2023 were 4.007 million tons, slightly lower than the 4.253 million tons dispatched during the same month in the previous fiscal year.
Cement Industry Sees Decline in October Sales
Local cement dispatches by the industry during October 2023 were 3.292 million tons, marking a significant 15.38% decrease from the 3.890 million tons in October 2022.
In contrast, exports saw a substantial surge of 97.33%, with volumes increasing from 362,350 tons in October 2022 to an impressive 715,028 tons in October 2023.
Regional Variations in Cement Dispatches
North-based cement mills dispatched 2.903 million tons of cement in October 2023, experiencing an 11.35% decline compared to the 3.275 million tons dispatched in October 2022.
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South-based mills, on the other hand, dispatched 1.104 million tons of cement during October 2023, representing a notable 12.90% increase compared to the 0.978 million tons dispatched in October 2022.
Shifts in Domestic and Export Markets
In October 2023, North-based mills dispatched 2.780 million tons of cement in domestic markets, reflecting an 11.57% decrease from the 3.143 million tons dispatched in October 2022. South-based mills dispatched 512,320 tons of cement in local markets during October 2023, which was 31.41% less than the 746,927 tons dispatched in October 2022.
Exports from North-based mills declined by 6.16% , reducing from 131,111 tons in October 2022 to 123,029 tons in October 2023. However, exports from the South saw a remarkable increase of 156.01%, reaching 591,999 tons in October 2023, up from 231,239 tons during the same month the previous year.
Overall Performance in the Current Fiscal Year
During the first four months of the current fiscal year, total cement dispatches (domestic and exports) amounted to 15.892 million tons, a notable increase of 14.55% compared to the 13.874 million tons dispatched during the corresponding period in the previous fiscal year.
Domestic dispatches during this period reached 13.426 million tons, a 7.47% increase from the 12.492 million tons in the same period last year.
Exports also surged by 78.53% , with volumes reaching 2.466 million tons during the first four months of the current fiscal year, a significant improvement from the 1.381 million tons exported during the same period in the previous fiscal 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% increase from the 10.402 million tons dispatched in July-October 2022.
Exports from the North also showed promise, with a 31.31% increase to 551,264 tons during July-October 2023, up from 419,823 tons exported during the same period last year.
Cement Industry Sees Decline in October Sales – Challenges
The cement industry in Pakistan continues to face dynamic market conditions, with local sales experiencing challenges while exports demonstrate significant growth. The future of the industry will likely depend on various factors, including economic stability and international demand.