KARACHI: During first five months of current fiscal year (July-Nov), the cement industry recorded minor growth of 0.30 per cent compared with the same period last fiscal year (YoY).

Total dispatches during the period were 13.167 million tonnes against 13.127 million tonnes during the corresponding period of last fiscal year, a press release by the All Pakistan Cement Manufacturers’ Association (APCMA) stated.

It said that during the month of November 2013, local sales of cement was up 8.61pc while exports declined by 12.84pc, resulting in an overall marginal growth of 3.03pc YoY. The increase in domestic consumption was offset by substantial reduction in exports.

The association noted that data compiled by it showed total sales of cement during Nov 2013 at 2.731 million tonnes compared to 2.650 million tonnes YoY. The domestic sales increased to 2.13 million tonnes during Nov from 1.96 million tonnes during same month last year while the exports declined to 600,000 tonnes from 689,000 tonnes.

The cement manufacturers’ body said that the capacity utilisation during first five months of current fiscal was only 70.79pc. “It is the lowest recorded capacity utilisation in the last five years,” the APCMA claimed.

“The export to Afghanistan is declining gradually due to slow pace of new project development in the country,” said the APCMA statement, adding that expected withdrawal of Nato forces from Afghanistan has also created an uncertainty in the country. India is also experiencing economic slowdown resulting in reduction in cement demand.

The association claimed that the cost of production of cement industry was rapidly going up due to increase in transportation and electricity costs, hike in interest rates and rupee devaluation. The margins were also stated to be under pressure due to those factors.