Cement Deliveries Surge 4.63% Year Over Year in December 2023

In December 2023, cement deliveries witnessed a notable increase of 4.63% compared to the same period last year, reaching a total of 4.06 million tons. This positive trend was highlighted in a press release issued by the All Pakistan Cement Manufacturers Association (APCMA), indicating a rise from 3.881 million tons dispatched during the corresponding month in the previous fiscal year.

The local cement market experienced a decrease in dispatches during December 2023, with the industry delivering 3.536 million tons, reflecting a decline of 3.81% year over year, in contrast to the 3.676 million tons in December 2022.

However, exports saw a remarkable surge, increasing by a substantial 2.56 times, with volumes rising from 205,061 tons in December 2022 to 524,656 tons in December 2023.

Breaking down the regional data, north-based cement mills showed almost flat growth, dispatching 3.012 million tons in December 2023, a marginal increase from 3.01 million tons in December 2022. On the other hand, south-based mills exhibited a significant 20.50% year-over-year increase, dispatching 1.048 million tons in December 2023, compared to 0.87 million tons in December 2022.

In the domestic market, north-based cement mills dispatched 2.936 million tons in December 2023, indicating a 0.69% year-over-year decline from the 2.956 million tons dispatched in December 2022. South-based mills delivered 600,073 tons of cement domestically in December 2023, representing a 16.62% year-over-year reduction from the 719,721 tons in December 2022.

Exports from north-based mills increased by 39.58% year over year, reaching 75,967 tons in December 2023, compared to 54,427 tons in December 2022. Similarly, exports from the south surged by a significant 2.98 times year over year, totaling 448,689 tons in December 2023, up from 150,634 tons in the same month of the previous year.

Looking at the performance over the first six months of the current fiscal year, total cement dispatches (domestic and exports) reached 23.876 million tons, marking a 9.71% year-over-year increase from the 21.764 million tons in the corresponding period of the last fiscal year.

North-based mills dispatched 16.772 million tons domestically during the first six months of the current fiscal year, a 1.52% year-over-year increase from the 16.522 million tons from July to December 2022. Exports from the North increased by 33.4% year over year to 771,173 tons during the same period.

South-based mills, however, experienced a 1.62% year-over-year reduction in domestic dispatches from July to December 2023, delivering 3.451 million tons compared to 3.508 million tons during the same period of the last fiscal year. On the contrary, exports from the South increased by 2.49 times year over year, reaching 2.882 million tons during July to December 2023.

The cumulative total dispatches by South-based Mills increased by 35.79% year over year to 6.333 million tons during the first six months of the current financial year, compared to 4.664 million tons during the same period of the last financial year.

Expressing concerns over the negative growth in domestic dispatches during the last four months, a spokesman for the All Pakistan Cement Manufacturers Association emphasized the importance of government intervention to accelerate Public Sector Development Program (PSDP) projects and address operational challenges. Two major concerns for the cement industry include issues related to the new Axle Load regime and Track and trace system. The industry remains optimistic about receiving a positive response after engaging with relevant authorities.