KARACHI: Cement sales soared to a record 35.4 million tonnes during 2014-15 as compared to 34.28 million tonnes in 2013-14.

The jump was led by record domestic consumption of 28.2 million tonnes during the year compared to 26.14 million tonnes the previous year, an increase of eight per cent.

However, exports declined by 11.58pc to 7.2 million tonnes in 2014-15 as compared to the previous year’s of 8.14 million tonnes, showed data released by All Pakistan Cement Manufacturers Association (APCMA) on Saturday.

Domestic sales of North-based cement plants were up by 8.16 per cent to 23.445 million tonnes while South-based mills recorded 6.55pc rise to 4.761 million tonnes.

Month-wise break-up showed domestic cement sales in June 2015 rose by 7pc to 2.714 million tonnes as compared with 2.537 million tonnes during the same month last year.

Cement exports dipped by 19.77pc to 552,000 tonnes in June 2015 from 688,000 tonnes in the same month last year.

Exports to Afghanistan fell by 21.4pc to 2.87 million tonnes during the year under review as compared to 3.65 million tonnes in 2013-14.

Exports by sea also fell by 4.69pc to 3.62 million tonnes in 2014-15 as against 3.8 million tonnes in the preceding year. Due to non-tariff barriers, despatches to India marginally grew 2.82pc to 696,417 tonnes from 677,306 tonnes in 2013-14.

A spokesman for APCMA said sharp decline in exports from North-based mills should be an eye-opener for the policymakers. The decline in exports to Afghanistan was due to influx of Iranian cement. He urged the government to provide freight subsidy for export to Afghanistan enabling local exporters to compete with highly subsidised Iranian cement.

The spokesman anticipated increase in cement price after Eidul Fitr due to rising cost of production following increase in duty on imported coal, imposition of GIDC and hike in electricity tariff in the budget 2015-16.

Published in Dawn, July 5th, 2015

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