ISLAMABAD: In July 2023, the cement sector showed positive trading with a notable increase of 57.44% in dispatches compared to the same month in the previous fiscal year.
The All Pakistan Cement Manufacturers Association (APCMA) released data revealing that total cement dispatches during July 2023 were 3.212 million tons, up from 2.040 million tons in July 2022.
Local cement dispatches by the industry in July 2023 were 2.776 million tons, showing a significant increase of 47.15% compared to 1.887 million tons in July 2022. Additionally, export dispatches witnessed a massive surge of 183.91%, with volumes increasing from 153,517 tons in July 2022 to 435,854 tons in July 2023.
During July 2023, North-based cement mills despatched 2.473 million tons of cement, marking a 46.54% increase compared to 1.688 million tons in July 2022. South-based mills also experienced a substantial rise, despatching 739,376 tons of cement, which was 109.61% more than the 352,747 tons despatched in July 2022.
In the domestic markets, North-based mills dispatched 2.351 million tons of cement in July 2023, reflecting a 45.37% increase compared to 1.617 million tons dispatched in July 2022. Similarly, South-based mills dispatched 425,336 tons of cement to local markets during July 2023, showing a 57.84% increase compared to the dispatches of 269,477 tons in July 2022.
Exports from North-based mills increased by 73.41% with quantities rising from 70,247 tons in July 2022 to 121,814 tons in July 2023. Meanwhile, exports from the South surged by 277.13% to 314,040 tons in July 2023 from 83,270 tons during the same month in the previous year.
The APCMA spokesman said that the stability of the country’s economy relies heavily on a stable government. Although the start of the current fiscal year seems promising compared to the previous year, the domestic dispatches in July 2023 were nearly 20% less than in June 2023, indicating a decline from the previous month.
The spokesman also expressed concerns about the rising cost of production, attributing it to the provincial government’s decision to increase the rate of royalty from Rs 115 per ton to Rs 250 per ton.
Additionally, the rate of electricity has been raised by almost Rs 7.5 per unit, and the recent increase in fuel cost of around Rs 20 per liter has impacted freight costs. Nevertheless, the spokesman remained positive that this fiscal year would be better for the sector due to expected investments in large-scale projects.
