The unprecedented and extremely high tax measures leading to a huge increase in cement prices have resulted in a steep decline in the demand for cement. Cement sales declined by 25.68% in August 2024. Total cement dispatches during August 2024 were 3.366 million tons compared to 4.528 million tons dispatched during the same month of the last fiscal year.
According to the data released by the All Pakistan Cement Manufacturers Association, local cement dispatches by the industry during August 2024 were 2.752 million tons compared to 3.798 million tons in August 2023, showing a decline of 27.54%. Export dispatches also declined by 16% as the volumes reduced from 730,755 tons in August 2023 to 613,857 tons in August 2024.
In August 2024, North-based cement mills dispatched 2.530 million tons of cement, showing a decline of 22.20% against 3.252 million tons dispatched in August 2023. South-based mills dispatched 835,245 tons of cement during August 2024, which was also 34.54% less compared to the dispatches of 1.276 million tons during August 2023.
North-based cement mills dispatched 2.325 million tons of cement in domestic markets in August 2024, showing a decline of 24.70% against 3.088 million tons dispatched in August 2023. South-based mills dispatched 426,289 tons of cement in local markets during August 2024, which was 39.91% less compared to the dispatches of 709,443 tons during August 2023.
Exports from North-based mills increased by 24.79% as the quantities rose from 164,195 tons in August 2023 to 204,901 tons in August 2024. However, exports from the South reduced by 27.82% to 408,956 tons in August 2024 from 566,560 tons during the same month last year.
During the first two months of the current fiscal year, total cement dispatches (domestic and exports) were 6.375 million tons, which is 17.82% lower than the 7.758 million tons dispatched during the corresponding period of the last fiscal year.
Domestic dispatches during this period were 5.214 million tons against 6.578 million tons during the same period last year, showing a reduction of 20.73%. Export dispatches were also 1.65% less as the volumes reduced to 1.161 million tons during the first two months of the current fiscal year compared to 1.181 million tons exported during the same period of the last fiscal year.
North-based mills dispatched 4.418 million tons of cement domestically during the first two months of the current fiscal year, showing a reduction of 18.78% compared to cement dispatches of 5.440 million tons during July-August 2023.
Exports from the North increased by 6.23% to 303,821 tons during July-August 2024 compared with 286,009 tons exported during the same period last year. Total dispatches by North-based mills reduced by 17.53% to 4.722 million tons during the first two months of the current financial year from 5.726 million tons during the same period of the last financial year.
Domestic dispatches by South-based mills during July-August 2024 were 795,846 tons, showing a reduction of 30.02% over 1.137 million tons of cement dispatched during the same period of the last fiscal year. Exports from the South also declined by 4.17% to 857,198 tons during July-August 2024 compared with 894,537 tons exported during the same period last year.
Total dispatches by South-based mills reduced by 18.64% to 1.653 million tons during the first two months of the current financial year from 2.032 million tons during the same period of the last financial year.
A spokesman for the All Pakistan Cement Manufacturers Association mentioned that the domestic update has continuously shown a negative trend over the last 12 months as the industry struggles to cope with higher taxes and economic uncertainty in the country, while heavy monsoons also impacted construction activities last month.
“In the current budget, excise on cement doubled along with a sharp increase in other federal and provincial taxes. No other businesses have been taxed in such an enormous proportion. The government must review the taxation measures as the construction sector is suffering due to the continuous decline in domestic offtake, which in turn is hurting employment opportunities for skilled and unskilled labor, putting more pressure on an already struggling economy. We urge the government to address the concerns of the cement industry to bring it out of these difficult times,” he added.
