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Cement sales increase 15.70% in Jul-Dec

MM News Staff by MM News Staff
January 5, 2021
Cement sale in Pakistan witnesses 57% increase last month  

Cement sale in Pakistan witnesses 57% increase last month  

ISLAMABAD: The cement sector posted a growth of 15.66% during the first six months of the fiscal year 2020-21 as demand in the domestic market accelerated due to the attractive incentives announced by the government for the construction sector.

According to data released by the All Pakistan Cement Manufacturers Association (APCMA), the sales reached 28.6 million tons as compared to 24.8 million tons during July-December 2019.

Local sales witnessed an uptick of 15.9% in July-December 2020 to 23.6 million tons as opposed to 20.4 million tons in the same period of the previous fiscal year. Exports grew from 4.4 million tons in July-December 2019 to 5 million tons in July-December 2020, showing a growth of 14.6%.

During the six months under review, cement sales from the north increased by 16.21% to 20.2 million tons against 17.4 million tons during July-December 2019. Exports from the north fell from 1.4 million tons during July-December 2019 to 1.2 million tons in the same period of the current fiscal year, a contraction of 14.74%. In the south, domestic cement sales increased by 13.97% to 3.4 million tons during July-December 2020 on a year-on-year basis.

Exports from the region rose 28.74% to 3.8 million tons in July-December 2020 against 2.96 million tons during the corresponding period of the previous fiscal year. Exports decreased in the last two months (Nov-Dec) due to heavy congestion at ports and priority in berthing being given to imports of wheat, sugar, and canola as per directives of the government.

READ MORE: Cement sales grow 4.19% in November

In December 2020, the cement sector posted a growth of 11.18% as the total sales reached 4.8 million tons. Cement sales had stood at 4.3 million tons in December 2019.

The local cement sales increased to 4.15 million tons in December 2020 compared to 3.54 million tons in December 2019, depicting a rise of 17.47%. Cement exports dropped for the second consecutive month, which fell from 769,986 tons in December 2019 to 633,431 tons during the month under review.

In the northern region, domestic cement sales increased by 17.1% to 3.5 million tons in December 2020. The cement sales in the region were recorded at 3 million tons in December 2019.

On the other hand, exports from the north decreased by 40.52% as they dropped from 0.2 million tons in December 2019 to 0.12 million tons last month. In the southern region, local cement sales surged to 682,854 tons during December 2020, up 19.47% compared to 571,558 tons in December 2019.

The exports from the south were recorded at 0.5 million tons during the month under review against 0.56 million tons in December 2019, a drop of 9.36%. A spokesman for APCMA said rising coal, electricity, and diesel prices were affecting the cement sector.

Tags: CEMENTsales
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