KARACHI: Local cement sales rose 7.47 per cent to 13.426 million tonnes in the first four months of the current fiscal year from 12.492m tonnes in the corresponding period last year.

However, export shipments surged 78.53pc to 2.466m tonnes during July-October from 1.381m tonnes in the same period last year.

All Pakistan Cement Manufacturers Association (APCMA) announced that overall cement despatches (domestic and exports) witnessed a rise of 14.55pc to 15.892m tonnes compared to 13.874m tonnes during 4MFY23.

However, local cement sales fell 15.38pc to 3.292m tonnes in October compared to 3.890m tonnes in the same month last year, while exports almost doubled (97.33pc) to 715,028 tonnes from 362,350 tonnes in October 2022.

Overall cement sales (local and exports) dipped by 6pc to 4m tonnes in October from 4.253m tonnes in the same month last year.

Fahad Hussain Khan of Topline Securities attributed the drop in October local sales (year on year) to the unavailability of labour due to the start of the rabi season, high construction costs and a slowdown in construction activities.

However, the increase in local sales during 4MFY23 was due to the low base effect of last year. It’s pertinent to mention that the country was affected by floods last year, which hampered construction activities in July-August 2022.

Mr Hussain expected local cement dispatches to grow by 5pc to 42m tonnes in FY24 due to improved farmers’ income and economic stability followed by an anticipated 8pc rise in exports to 5m tonnes in FY24, taking the total cement despatches to 47m tonnes, up 5pc.

The average cement retail price in October remained relatively flat at Rs1,207/bag in the north, while it increased by Rs18/bag to Rs1,187/bag in the south.

Published in Dawn, November 4th, 2023