North-based Cement Mills register 6.08% YoY increase in January 2023

March 03, 2023 (MLN): North-based cement mills despatched 2.892 million tons of cement in January 2023, showing an increase of 6.08% against 2.726 million tons of despatches in January 2022, according to the data released by All Pakistan Cement Manufacturers Association on Friday. 

Exports from North-based mills increased by 156.54% as the quantities increased from 13,727 tons in January 2022 to 35,215 tons in January 2023. On the other hand, the exports from the South reduced by 28.74% to 382,852 tons in January 2023 from 537,279 tons during the same month last year. 

South-based mills despatched 730,703 tons of cement in local markets during January 2023 which was 4.92% more compared to the despatches of 696,468 during January 2022. 

Overall cement despatches in January 2023 increased by 1.15% YoY as the total cement despatches stood at 4.005 million tons against 3.960 million tons despatched during the same month of last fiscal year. 

During the first seven months of current fiscal year, total cement despatches (domestic and exports) were 25.769 million tons which is 17.97% lower than 31.416 million tons despatched during the corresponding period of the last fiscal year.

Domestic despatches during this period were 23.617 million tons against 27.474 million tons during the same period last year showing a reduction of 14.04%.

Export despatches were also 45.40% less as the volumes reduced to 2.152 million tons during the first seven months of the current fiscal year compared to 3.942 million tons of exports done during the same period of last fiscal year.

North-based Mills despatched 19.378 million tons of cement domestically during the first seven months of the current fiscal year showing a reduction of 15.29% from cement despatches of 22.875 million tons during the July 2021-January 2022 period.

Exports from the North increased by 9.98% percent to 613,289 tons during July 2022-January 2023 period compared with 557,615 tons exported during the same period last year.

Total despatches by North-based Mills reduced by 14.69% to 19.992 million tons during the first seven months of the current financial year from 23.433 million tons during the same period of the last financial year.

Domestic despatches by South-based Mills during July 2022-January 2023 period were 4.239 million tons showing a reduction of 7.83% over 4.599 million tons of cement despatched during the same period of last fiscal year. Exports from the South declined by 54.53% to 1.539 million tons during July 2022-January 2023 period compared with 3.384 million tons exported during the same period last year.

Further, the total despatches by South-based Mills reduced by 27.63% to 5.778 million tons during the first seven months of the current financial year from 7.983 million tons during the same period of the last financial year.

A spokesman of the All Pakistan Cement Manufacturers Association emphasized the continued political instability for the last many months and its serious effects on the economy.

He mentioned that we are facing several challenges due to the non-opening of letters of credit for coal, spare parts, and other consumable items required for the smooth running of the plants.

Government must ensure that letters of credit are opened on a timely basis to avoid any supply disruptions and closure of factories, he added. 

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