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Cement despatches increase by 20.12pc in 2020-21

LAHORE: Launch of construction activities under Naya Pakistan Housing Scheme and good Public Sector Development Programme (PSDP) spending helped cement sector to register a robust growth during financial year 2020-21 as the total cement despatches of the country grew by 20.12 percent to 57.433 million tons from 47.812 million tons during FY 2019-20.

According to the data released by the All Pakistan Cement Manufacturing Association (APCMA) during the financial year 2020-21, local cement despatches witnessed an increase of 20.40 percent to 48.119 million tons from 39.965 million tons during last financial year 2019-20. Exports also increased from 7.847 million tons during financial year 2019-20 to 9.314 million tons during the financial year 2020-21, showing a growth of 18.69 percent.

In the north region, local cement despatches increased by 18.22 percent to 40.582 million tons during July 20 to June 21 from 34.328 million tons despatched during July 19 to June 20.

Exports from the north increased by 30.25 percent to 2.566 million tons in July to June 2021 from 1.970 million tons during the same period last year.

In the south region, domestic cement despatches increased by 33.70 percent to 7.537 million tons during July 20 to June 21 from 5.638 million tons in July 19 to June 20.

Exports from the south also increased by 14.82 percent to 6.747 million tons in July 20 to June 21 from 5.877 million tons during corresponding period of the last year.

In June 2021, the sector posted of 12.73 percent compared to June 2020. Total cement despatches during June 2021 were 5.211 million tons against 4.623 million tons despatched during the same month of last fiscal year.

The data shows, local cement despatches in the month of June 2021 increased to 4.668 million tons against 3.834 million tons despatched in June 2020, showing an increase of 21.74 percent. Exports dropped by 31.12 percent to 542,622 tons in June 2021 compared to 787,842 tons exported in June 2020.

Region wise, domestic cement despatches in the north during June 2021 increased by 14.06 percent to 3.859 million tons from 3.384 million tons in June 2020. Exports from the north massively increased by 337.89 percent to 201,540 tons in June 2021 from 46,025 tons in June 2020.

In the south region, domestic cement despatches increased by 79.35 percent to 808,490 tons during June 2021 from 450,792 tons in June 2020. Exports from south however decreased by 54.02 percent to 341,082 tons in June 2021 from 741,817 tons in June 2020.

The APCMA spokesman termed the FY2020-21 as a good year for cement due to considerable growth in demand. Cement industry is expanding its capacity from 70 million tons to around 100 million tons with the hope that the demand will increase by 15% annually for the next three years due to increase in allocation in PSDP, increase in CPEC related projects and housing as well as industrial demand, he added.

The coal prices are showing significant upward trend as the C&F cost during financial year ended on 30th June 2021 has increased to USD 140 per ton from USD 60 per ton same period last year. Along with coal prices, the electricity tariff and furnace oil prices have also increased which has impacted the overall cost of production which has gone up by around Rs 110 per bag compared to same period last year, he concluded.

Copyright Business Recorder, 2021

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