Cement sales rose by nearly 8% in May
Cement sales witnessed a nearly 8% increase during the month of May
Cement despatches surged by 7.83% in May 2024, totaling 4.275 million tons compared to 3.965 million tons in May of the previous fiscal year (FY23).
In May 2024, local cement despatches by the industry totaled 3.357 million tons, showing a decline of 2.17% compared to May 2023. However, exports surged by 72.16%, reaching 917,962 tons compared to 533,215 tons in May 2023, as per data from the All Pakistan Cement Manufacturers Association.
In May 2024, cement mills in the North despatched 2.915 million tons of cement, marking a 1.36% increase from the 2.876 million tons despatched in May 2023. Meanwhile, South-based mills despatched 1.359 million tons of cement in May 2024, reflecting a substantial 24.91% increase compared to the 1.089 million tons despatched in May 2023.
In May 2024, North-based cement mills dispatched 2.753 million tons of cement in domestic markets, marking a slight decline of 0.44% from the 2.765 million tons despatched in May 2023. Meanwhile, South-based mills despatched 604,672 tons of cement in local markets during May 2024, showing a decrease of 9.33% compared to the despatches of 666,867 tons during May 2023.
Exports from North-based mills saw a notable increase of 46.11%, with quantities rising from 111,511 tons in May 2023 to 162,929 tons in May 2024. Similarly, exports from South-based mills surged by 79.04%, reaching 755,033 tons in May 2024 from 421,704 tons during the same month last year.
During the first eleven months of the current fiscal year (11MFY24), total cement despatches, including domestic and exports, amounted to 41.730 million tons. This figure marks a 3% increase compared to the 40.516 million tons despatched during the same period in the previous fiscal year (11MFY23).
Domestic despatches during this period amounted to 35.097 million tons, a decrease of 3.91% compared to 36.526 million tons during the same period last year.
Export despatches saw a significant increase, rising by 66.26%, with volumes reaching 6.633 million tons during 11MFY24, up from 3.990 million tons exported during 11MFY23.
During 11MFY24, North-based mills dispatched 28.931 million tons of cement domestically, marking a 3.31% reduction from the 29.921 million tons dispatched during 11MFY23. Meanwhile, exports from the North surged by 38.47%, reaching 1.349 million tons during 11MFY24, compared to 0.974 million tons exported during 11MFY23.
Total despatches from North-based mills decreased by 1.99%, reaching 30.280 million tons during 11MFY24, down from 30.896 million tons during 11MFY23.
Domestic despatches from South-based mills during 11MFY24 amounted to 6.166 million tons, indicating a decrease of 6.64% compared to the 6.605 million tons of cement despatched during 11MFY23.
Exports from South-based mills saw a significant surge, rising by 75.23% to 5.284 million tons during 11MFY24, compared to 3.015 million tons exported during 11MFY23.
Total despatches by South-based mills also increased notably by 19.02%, reaching 11.450 million tons during 11MFY24, up from 9.620 million tons during 11MFY23.
A spokesperson for the All Pakistan Cement Manufacturers Association expressed optimism about the significant increase in exports. However, they highlighted a persistent challenge: the industry’s overreliance on domestic markets, which have seen negative growth in despatches for the ninth consecutive month. They emphasized the importance of government attention to address these concerns in the upcoming budget.
“We have an almost one-third idle capacity, which if utilized, can bring our operational costs down and provide relief to the end consumers”, he added.