KARACHI: The country’s domestic cement despatches edged up by 3.86 per cent to 23.638 million tonnes in 7MFY20 from 22.759m tonnes while exports jumped 25.23pc to 5.148m tonnes, from 4.141m.
As a result, the overall cement despatches (local sales and exports) in the first seven months of 2019-20 increased by 7.15pc to 28.824m tonnes from 26.9m.
The phenomenon of exports being more than local despatches has helped South-based mills as their domestic sales declined by 26pc from 4.798mn tonnes in 7MFY20 to 3.548m tonnes. On the other hand, exports from the region soared by 46.18pc to 3.579m tonnes from 2.448m.
According to figures from All Pakistan Cement Manufacturers Association (APCMA), North-based mills despatched 20.09m tonnes locally during July-January FY20, up 11.85pc over 17.96m tonnes from corresponding months of last fiscal year. In contrast, they exported 1.606m tonnes, down 5.08pc, from 1.692m tonnes.
In January 2020, total despatches increased to 4.074m tonnes, rising by 11.26pc from 3.662m tonnes during the same month last year.
Domestic consumption in January 2020 rose by 6pc to 3.265m tonnes as compared to 3.082m tonnes, while exports surged by 39.49pc to 0.808m tones from 0.579m in corresponding month of 2019.
A very interesting situation has developed in the cement sector as domestic growth is entirely led by the North-based plants while exports by mills in the South.
North-based mills despatched 2.684mn tonnes locally, which was 11.32pc higher than 2.371m during the corresponding month of last year. Meanwhile, their exports continued to decline as they fell by 13.55pc to 0.186m tonnes in January, versus 0.215m tonnes.
In the Southern region, domestic consumption declined by 18.23pc to 0.581m tonnes in January, from 0.711m tonnes while exports surged by 71pc to 0.623m tonnes as against 0.364m in corresponding month last year.
Though the less-than-expected and nominal increase in cement despatches and continuous decline in local sales from South is worrisome, the rise in exports depicts the competitiveness of Pakistani industry that has delivered in line with the rupee devaluation, said the APCMA spokesperson.
He appealed to the government to start working on the housing schemes and other construction activities which would open new job avenues.
Currently, the cement production capacity stands at 69.54m tonnes whereas domestic despatches are around 41m tonnes, thus leaving a huge surplus of 28.54m.
Published in Dawn, February 7th, 2020
