Cement despatches declines by 21% YoY during 2HCY22

January 04, 2023 (MLN): The total cement despatches dropped by 21% YoY to 21.76MTs during 2HCY22 as compared to 27.456MTs despatched in the same period last year (SPLY), the data released by All Pakistan Cement Manufacturers Association on Wednesday showed.

Domestic despatches during this period were 20.03MTs against 24.06MTs in previous year showing a reduction of 16.77% YoY.

Similarly, export despatches were reduced by 48.86% YoY to 1.73MTs in 2HCY22 compared to 3.39MTs exports done during SPLY.

The current economic turmoil has badly impacted the cement consumption, and inflation has played havoc with the pockets of the consumers, an official from All Pakistan Cement Manufacturers Association said.

He further added, “New construction projects including housing are few in number while the routine maintenance of residences has been postponed for better times. At the exports front, the Russia-Ukraine war has badly impacted cement exports too.”

On monthly basis, in December 2022 the cement despatches were 3.88MTs, went down by 15.55% YoY as compared to 4.59MTs despatched during the same month of last year.

Local cement despatches by the industry during the month of December 2022 were 3.67MTs compared to 4.05MTs in December 2021, showing a decline of 9.41%. Exports despatches also declined by massive 61.88% YoY as the volumes reduced from 538,002 tons in December 2021 to 205,061 tons in December 2022.

North based cement mills despatched in December 2022 were 3.01MTs showing a decline of 11.60% YoY against 3.41MTs despatches in the same month last year.

South based mills despatched 870,355 tons cement during December 2022 that was 26.86% less compared to the despatches of 1.19MTs during December 2021.

In domestic market, north based cement mills despatches declined by 12.48% YoY to 2.96MTs in December 2022 against 3.3MTs despatches in December 2021.

On the other hand, south based mills despatches inclined by 5.86% YOY to 719,721 tons as compared to 679,868 in the same month last year.

Furthermore, exports from North based mills increased by 95.18% YoY as the quantities increased from 27,885 tons in December 2021 to 54,427 tons in December 2022. Exports from South reduced by 70.47% YoY to 150,634 tons in December 2022 from 510,117 tons during the same month last year.

North based Mills despatched 16.52MTs cement domestically during the 2HCY22 showing a reduction of 18.06% YoY than cement despatches of 20.16MTs during 2HCY21.

Exports from north increased by 6.29% YoY to 578,074 tons during 2HCY22 compared with 543,888 tons exported during the same period last year.

Total despatches by North based mills reduced by 17.42% YoY to 17.10MTs during first six months of current financial year from 20.71MTs during same period of last financial year.

Meanwhile, domestic despatches by south based mills during 2HCY22 were 3.51MTs showing reduction of 10.10% YoY over 3.90MTs cement despatched in SPLY.

Similarly, exports from south declined by 59.39% YoY to 1.16MTs during 2HCY22 compared with 2.84MTs exported during the same period last year.

Total despatches by south based mills reduced by 30.90% YoY to 4.66MTs during 2HCY22 from 6.75Mts in SPLY.

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