LAHORE: Sales of cement industry in the domestic market fell in double digits in February 2019 compared with the corresponding month of last year.
According to data released by the All Pakistan Cement Manufacturers Association (APCMA), overall sales of the cement industry reached 3.325 million tons in February 2019 compared to 3.479 million tons in February 2018.
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The domestic market slowed down sharply as cement consumption fell 19.05% from 3.479 million tons in February 2018 to 2.817 million tons in February 2019.
Cement exports from the country rose a healthy 69.07% on a year-on-year basis in February. The industry exported 0.508 million tons of cement and clinker against exports of 0.301 million tons in February 2018.
Domestic consumption in the northern part of the country continued to decline as it stood at 2.148 million tons in February 2019 against 2.871 million tons in the same month of last year.
Exports from mills based in the northern region also suffered a decline of 8.66% to 0.165 million tons in February 2019 against 0.181 million tons in the corresponding month of previous year.
Mills in the southern part of the country fared comparatively better as domestic consumption in the region stood at 0.669 million tons compared to 0.609 million tons in February 2018. Exports from the region increased 185% from 0.120 million tons in February 2018 to 0.343 million tons in February 2019.
Overall, cement dispatches in first eight months (Jul-Feb) of the current fiscal year were recorded at 30.091 million tons, which were 0.05% lower than sales of 30.106 million tons in the same period of last year. Of this, exports during July-February FY19 went up to 4.649 million tons, higher by 52.30% from 3.053 million tons in the corresponding period of last year.
Mills in the north continued to suffer as domestic demand declined 10.58% to 19.98 million tons in the first eight months of FY19 from 22.344 million tons in the same period of last year.
In a statement, an APCMA spokesman expressed dismay over the constant decline in cement sales in the country, especially in the northern region, for various reasons.
According to him, rains in almost all parts of the country have affected construction activities. Moreover, the halt to government spending on the Public Sector Development Programme (PSDP) is also a major concern for the industry.
Meanwhile, exports to India have stopped due to growing tensions between the two countries.
He appealed to the government to support the industry by minimising duties and taxes, especially on exports, to help it earn foreign exchange in these testing times.
