Cement dispatches drop 6.81% in July 2024

August 05, 2024 (MLN): Marking the 11th consecutive month of declining domestic sales, cement dispatches dropped by 6.81% in July 2024. Total cement dispatches during July 2024 were 3 million tons (MTs) compared to 3.23 MTs dispatched during the same month of the previous fiscal year, according to the data released by the All Pakistan Cement Manufacturers Association (APCMA).

An APCMA spokesperson attributed this reduction to higher taxes and increasing input costs, which are seriously affecting the country's cement sector and contributing to sluggish economic activity.

Local cement dispatches by the industry during July 2024 were 2.463 MTs, compared to 2.780 MTs in July 2023, showing a decline of 11.41%. On the export side, dispatches increased by 21.65%, with volumes rising from 449,792 tons in July 2023 to 547,162 tons in July 2024.

In July 2024, North-based cement mills dispatched 2.192 MTs of cement, a decline of 11.40% from 2.474 MTs in July 2023. In contrast, South-based mills dispatched 817,799 tons of cement during July 2024, an 8.20% increase compared to 755,824 tons in July 2023.

North-based cement mills dispatched 2.093 MTs of cement in domestic markets in July 2024, an 11.01% decline from 2.352 MTs in July 2023. South-based mills dispatched 369,557 tons of cement in local markets during July 2024, a 13.62% decrease compared to 427,847 tons in July 2023.

Exports from North-based mills declined by 18.79%, with quantities reducing from 121,814 tons in July 2023 to 98,920 tons in July 2024. However, exports from South-based mills increased by 36.67%, rising from 327,977 tons in July 2023 to 448,242 tons in July 2024.

The cement industry urges the government to review its taxation policies to reduce the burden of heavy taxes on this critical sector of the economy.

"We support the government's documentation drive, but forcing very small retailers to register in a complicated sales tax system and install PoS systems is unlikely to yield additional sales tax revenue", he said.

Since cement is a 3rd Schedule item, the whole amount of sales tax on the consumer price is already paid by the manufacturer, the spokesperson added.

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