Landmark
Minister (2k+ posts)
Cement sales fall 7.1 percent on construction slowdown
LAHORE: Cement sales fell 7.13 percent year-on-year to 3.337 million tons in November as its demand decreased on slowdown in construction and development activities, industry data showed on Tuesday.
All Pakistan Cement Manufacturer Association’s (APCMA) data showed that local cement dispatches were recorded at 3.593 million tons in the corresponding month a year earlier.
Cement exports, however, increased 61.33 percent year-on-year to 0.563 million tons in November, owing to fall in rupee value against the US dollar.
Total cement offtakes stood at 3.899 million tons in November, down one percent compared with 3.941 million tons during the previous month.
Analysts said cement industry registered negative growth as economic activities slowed down due to unfavourable policies of the present government for the construction industry.
Growth momentum maintained for the five years has now come to halt due to stagnant domestic consumption despite exports picking up from southern part due to massive rupee devaluation, the analysts added. The northern region that catered to Afghanistan and Indian markets has not benefited from rupee depreciation because of political reasons.
The factories located in the northern region dispatched 2.871 million tons of cement in November compared with 3.245 million tons in November last year. Local cement dispatches from the region were down to 2.632 million tons from 2.967 million tons. North-based mills also faced decrease in exports to 0.239 million tons in November from 0.278 million tons.
Cement factories operating in the southern part of the country dispatched 1.029 million tons in November compared with 0.696 million tons a year earlier. Local dispatches from the region grew to 0.705 million tons from 0.626 million tons, while exports also shot up to 0.324 million tons during the last month as against 0.070 million tons a year ago.
In July-November, local sales fell to 16.283 million tons from 16.434 million tons in the corresponding period a year ago. The decline stands against the industry’s continuous expansion in production capacities, according to analysts.
Cement exports, however, increased more than 42 percent to 2.969 million tons during the first five months.
Total cement dispatches rose four percent to 19.253 million tons during the period under review.
Rupee devaluation that boosted exports also badly hit the industry’s cost of production. Coal, which is the key fuel to cement production, became expensive as rupee depreciation increased import cost.
APCMA’s spokesman hoped that the government would speed up its housing construction scheme and other development projects to revive the cement industry that employs a large workforce.
LAHORE: Cement sales fell 7.13 percent year-on-year to 3.337 million tons in November as its demand decreased on slowdown in construction and development activities, industry data showed on Tuesday.
All Pakistan Cement Manufacturer Association’s (APCMA) data showed that local cement dispatches were recorded at 3.593 million tons in the corresponding month a year earlier.
Cement exports, however, increased 61.33 percent year-on-year to 0.563 million tons in November, owing to fall in rupee value against the US dollar.
Total cement offtakes stood at 3.899 million tons in November, down one percent compared with 3.941 million tons during the previous month.
Analysts said cement industry registered negative growth as economic activities slowed down due to unfavourable policies of the present government for the construction industry.
Growth momentum maintained for the five years has now come to halt due to stagnant domestic consumption despite exports picking up from southern part due to massive rupee devaluation, the analysts added. The northern region that catered to Afghanistan and Indian markets has not benefited from rupee depreciation because of political reasons.
The factories located in the northern region dispatched 2.871 million tons of cement in November compared with 3.245 million tons in November last year. Local cement dispatches from the region were down to 2.632 million tons from 2.967 million tons. North-based mills also faced decrease in exports to 0.239 million tons in November from 0.278 million tons.
Cement factories operating in the southern part of the country dispatched 1.029 million tons in November compared with 0.696 million tons a year earlier. Local dispatches from the region grew to 0.705 million tons from 0.626 million tons, while exports also shot up to 0.324 million tons during the last month as against 0.070 million tons a year ago.
In July-November, local sales fell to 16.283 million tons from 16.434 million tons in the corresponding period a year ago. The decline stands against the industry’s continuous expansion in production capacities, according to analysts.
Cement exports, however, increased more than 42 percent to 2.969 million tons during the first five months.
Total cement dispatches rose four percent to 19.253 million tons during the period under review.
Rupee devaluation that boosted exports also badly hit the industry’s cost of production. Coal, which is the key fuel to cement production, became expensive as rupee depreciation increased import cost.
APCMA’s spokesman hoped that the government would speed up its housing construction scheme and other development projects to revive the cement industry that employs a large workforce.
