The cement sector reported a robust sales growth of 20.12% in fiscal year 2020-21 mainly on the back of normalisation of construction activities due to a relief package announced by Prime Minister Imran Khan coupled with progress on the Naya Pakistan Housing Scheme.
In addition, substantial funds allocation for construction in the Public Sector Development Programme (PSDP) also aided expansion of the sector.
According to data released by the All Pakistan Cement Manufacturers Association (APCMA) on Friday, total sales of cement came in at 57.4 million tons during the just-ended fiscal year against 47.812 million tons in fiscal year 2019-20.
Cement exports rose from 7.85 million tons in FY20 to 9.31 million tons in FY21, registering a growth of 18.69%.
In the northern region, local offtake of cement increased by 18.22% to 40.58 million tons in the previous fiscal year. According to the data, local sales had stood at 34.33 million tons in fiscal year 2019-20.
Exports from the north soared 30.25%, going up from 1.97 million tons in FY20 to 2.57 million tons in the previous fiscal year.
From the southern region, cement dispatches swelled from 5.64 million tons in fiscal year 2019-20 to 7.54 million tons in 2020-21, an increase of 33.7%
Exports from the southern part of the country registered a growth of 14.82% to 6.747 million tons in 2020-21. Foreign shipments from the southern region had been calculated at 5.88 million tons in 2019-20.
Sales in June
Cement sales increased 12.73% in June 2021 and climbed to 5.2 million tons as opposed to 4.62 million tons in the same month of last year.
Total cement sales to the domestic market came in at 4.67 million tons last month compared to 3.83 million tons in June 2020, depicting an increase of 21.74%.
Export of the commodity, however, fell 31.12% to 542,622 tons during the month under review. Foreign shipments of cement were recorded at 787,842 tons in June 2020.
Region-wise cement offtake in the north increased 14.06% to 3.86 million tons during June 2021 against 3.38 million tons in June 2020.
Exports from the northern region skyrocketed 337.89% as they rose from 46,025 tons in June 2020 to 201,540 tons in June 2021.
In the southern part, domestic sales stood at 808,490 tons during June 2021 compared to 450,792 tons in June 2020, showing a strong growth of 79.35%.
In line with the trend in the north, exports from the southern region also registered a decline as they dropped from 741,817 tons in June 2020 to 341,082 tons in June 2021, a decrease of 54.02%.
An APCMA spokesperson termed FY21 an excellent year for cement as demand grew considerably. “Cement industry is expanding its capacity from 70 million tons to around 100 million tons in the hope that demand will increase by 15% on an annual basis over the next three years,” he said.
Published in The Express Tribune, July 3rd, 2021.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.