Cement sales rises by 8% in May, led by exports.

In the upcoming budget, the industry urges the government to address its concerns.

Cement sales rises by 8% in May, led by exports.
Islamabad: Cement dispatches rose by 7.83% to 4.275 million tons from 3.965 million tons in May 2023. Local sales fell by 2.17% to 3.357 million tons, while exports surged by 72.16% to 917,962 tons.
 
In May, north-based cement mills dispatched 2.915 million tons, a 1.36% increase from 2.876 million tons in May 2023. South-based mills sold 1.359 million tons, a 24.91% increase from 1.089 million tons in May 2023. North-based mills supplied 2.753 million tons to domestic markets, a 0.44% decrease from 2.765 million tons in May 2023. South-based mills dispatched 604,672 tons locally, a 9.33% decrease from 666,867 tons in May 2023.
 
Exports from north-based mills increased by 46.11% to 162,929 tons in May 2024, compared to 111,511 tons in May 2023. Exports from the south rose by 79.04%, reaching 755,033 tons, up from 421,704 tons last year.
 
Over the first 11 months of the current fiscal year, total cement dispatches (domestic and exports) were 41.730 million tons, 3% higher than the 40.516 million tons during the same period last fiscal year. Domestic sales during this period were 35.097 million tons, down from 36.526 million tons, reflecting a 3.91% reduction. However, exports increased by 66.26%, reaching 6.633 million tons, up from 3.990 million tons last fiscal year.
 
North-based mills dispatched 28.931 million tons domestically, a 3.31% decrease from 29.921 million tons during July–May FY23. Exports from the north increased by 38.47%, totaling 1.349 million tons during July–May FY24, compared to 0.974 million tons during the same period last year.
 
An APCMA spokesman emphasized that despite the healthy rise in exports, the industry remains heavily dependent on domestic markets to reach its full potential. He expressed concern that the cement sector has posted negative growth in local dispatches for the ninth consecutive month and called on the government to address the industry's concerns in the upcoming budget. He noted that nearly one-third of the industry's capacity is idle, which, if utilized, could reduce operational costs and provide relief to consumers.