Topline Securities said cement sales in Pakistan were affected in May 2022 mainly due to Eid holidays and economic downturn. Export attrition is due to disruption in the global supply chain, leading to increased shipping costs. The Pakistan Cement Manufacturers Association (APCMA) noted that the continued fall in the Rupee coupled with soaring prices of coal, electricity and petroleum products is severely affecting trade momentum.
According to data released by APCMA, total local/overseas cement shipments in May 2022 decreased by 15.9% to 3.32 Mt from 3.94 Mt shipped in the same month of the previous fiscal year. . The breakdown shows that local sales were 3.15 Mt compared to 3.2 Mt in May 2021, a reduction of 1.6%. However, export shipments suffered a massive drop of 77%, with volumes falling from 746,550 t in May 2021 to 171,915 t in May 2022.
In the first 11 months of the current fiscal year (July-May 2022), total cement shipments (domestic and exports) were 47.62 Mt, 8.8% lower than the 52.22 Mt dispatched during the corresponding fiscal year. Further analysis indicates that domestic absorption decreased by 1.8% to 42.65 Mt from 43.45 Mt in July-May 2021. In contrast, exports over the same period decreased by 43.3 % at 4.97 Mt against 8.77 Mt in July-May 2021.
APCMA hopes that in the upcoming federal budget on June 10, the government will relieve the industry by reducing duties and taxes and focusing on Department of Planning, Development and Special Initiatives (PSDP) projects and of the China-Pakistan Economic Corridor (CPEC), which could help revive the industry in the next fiscal year.
Published under Cement News