Cement despatches increase by 36% MoM in May

June 02, 2023 (MLN): The total cement dispatches increased by 34% MoM to 3.97MTs in May 2023 as compared to 2.95MTs dispatched in the previous month, the data released by All Pakistan Cement Manufacturers Association on Friday showed.

However, cumulatively in 11MFY23, total cement dispatches witnessed a decline of 15% YoY to clock in at 40.52MTs compared to last year.

Whereas, local cement dispatches witnessed a decline of 14% YoY to clock in at 36.53MTs compared to last year.

Region-wise, North-based cement mills dispatched in May 2023 were 2.88MTs showing a decline of 31% MoM and 9% YoY against 2.65MTs dispatches in the same month last year.

South-based mills dispatched 1.09MTs during May 2023 which was 43% MoM 61% YoY higher than the dispatches of 0.68MTs during May 2022.

This decline in cement sales is mainly attributable to rising construction costs, rising interest rates, macroeconomic hurdles, lower PSDP and private sector spending, and lower exports due to futile prices.

In the domestic market, cement dispatches increased by 36% MoM and 9% YoY to 3.43MTs in May 2023 against 3.15MTs dispatches in May 2022.

Furthermore, exports surged by 3.1x YoY and by 27% MoM as the quantities increased from 0.17MTs in May 2022 to 0.53MTs in May 2023.

Meanwhile, export dispatches were reduced by 20% YoY in 1.73MTs in 11MFY23 to clock in at 3.99MTs.

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