KARACHI: All Pakistan Cement Manufacturers Association (APCMA) has said that the total cement dispatches during July–October of the fiscal year 2021/22 clocked-in at 18.04 million tonnes as against 19.32 million tonnes during the same period of the last year, registering a decline of 6.6 per cent.
Meanwhile, on a yearly basis, the overall dispatches reached 5.21 million tonnes in October 2021 against 5.74 million tonnes (-9.1 per cent/YoY) in October 2021. During the period, the decline in cement off-take is mostly attributed to an increase in the input costs coupled with the recent hike in the rupee value.
Similarly, price escalations are seriously affecting the cost of doing business in domestic and international markets and have been major concerns for the industry.
However, on a MoM basis, the total volumes boosted by 13.6 per cent as against 4.59 million tonnes sold in September 2021.
During the first four months of FY22, the local dispatches remained almost flat with 15.88 million tonnes. In this segment, the Southern Region observed an uptick in off-take by +23.1 per cent/YoY, while the Northern Region’s off-take declined -2.2 per cent/YoY in July-October 2021/22, respectively.
Similarly, on a monthly basis, the total local volumes clocked-in at 4.60 million tonnes in October 2021, up 14.5 per cent; wherein, both Northern and Southern regions posted the growth of +11 per cent/YoY with 3.83 million tonnes) and +36 per cent/YoY with 0.77 million tonnes, respectively.
Though, on a YoY basis, the Northern Region posted a decline of -8 per cent, compared with the local dispatches of 4.17 million tonnes in the same period of the last year. Yet, the sales from South improved +11 per cent/MoM.
Further, the government of Pakistan is also taking productive measures to boost the construction activities, aiming at bringing growth in the construction and housing sector, which could further lift up the local demand.
On the export front, the total dispatches contracted -40.3/per centYoY to 2.16 million tonnes during the four months of FY22. The North Region observed a downside of -49 per cent/YoY with the dispatches of 0.46 million tonnes as against 0.9 million tonnes in the same period of the last year, whereas exports from South clocked-in at 1.70 million tonnes (-37.5 per cent/YoY) in the four months of FY22.
Similarly, the exports contracted -30.1 per cent/YoY, reaching 0.6 million tonnes in October 2021 as against 0.88 million tonnes in October 2020, where North exports posted a downward curve of -74 per cent/YoY with 0.07 million tonnes and South exports plunged -9.1 per cent/YoY with 0.54 million tonnes in October 2021.
Moreover, the companies are maintaining their export market, while eyeing more to capture the local markets due to the better margin propositions, as higher energy and fuel prices are increasing the companies’ costs; therefore, the reduction in exports is witnessed during the cumulative period.
