KARACHI: Local cement sales grew 11 per cent in the first quarter (July-Sept) of 2015-16, while exports fell massively by 27pc.

Total despatches were 8.27 million tonnes, including local despatches of 6.77m tonnes and exports of 1.5m tonnes, leaving surplus capacity of 3.13m tonnes.

The despatches to domestic markets were 2.48m tonnes in Sept 2015 as compared to 2.42m tonnes during the same month last year, an increase of 2.5pc.

While exports, during the month, were 467,000 tonnes as compared to 730,000 tonnes in Sept 2014, a decline of 36pc. Total despatches stood at 2.95m tonnes as compared to 3.15m tonnes in the same month last year, showing a reduction of 6.35pc.

The mills located in south suffered more than those in the northern part of the country. Domestic cement despatches in south fell to 399,581 tonnes from 431,133 in Sept 2014. Consumption in north, however, increased from 1.99m tonnes to 2.084m tonnes in Sept 2015.

Exports from north fell to 306,564 tonnes in Sept 2015 from 480,025 tonnes in the same month last fiscal year. While from South, it declined to 160,698 tonnes from 249,906 tonnes in Sept 2014. All Pakistan Cement Manufacturers Association spokesman said the industry expects government to take steps in order to stop the penetration of Iranian cement in local markets.

“There is enough idle capacity and the government should support industry to export surplus volumes, otherwise its exports would continue to decline in coming months,” he added.

Published in Dawn, October 6th , 2015

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