Local cement sales experienced a remarkable surge, increasing by 47% in July 2023
According to data released by the All Pakistan Cement Manufacturers Association, the local cement sales for the industry in July 2023 reached 2.776 million tons, showing a remarkable increase of 47.11% compared to July 2022, when it was 1.887 million tons. Additionally, exports surged by a massive 184%, with volumes rising from 153,517 tons in July 2022 to 435,854 tons in July 2023. Overall, total cement sales in July 2023 reached 3.21 million tons, marking a 57% growth over the same month in the previous year.
In July 2023, cement mills based in the North dispatched 2.473 million tons of cement, representing a significant increase of 46.54% compared to the 1.688 million tons dispatched in July 2022. Similarly, cement mills in the South dispatched 739,376 tons in July 2023, a substantial 109.61% increase compared to the 352,747 tons dispatched in July 2022.
Regarding domestic markets, North-based cement mills dispatched 2.351 million tons of cement in July 2023, exhibiting a growth of 45.37% from the 1.617 million tons dispatched in July 2022. On the other hand, South-based mills dispatched 425,336 tons of cement in local markets during July 2023, showing a 57.84% increase from the 269,477 tons dispatched in July 2022.
Exports from North-based mills rose by 73.41%, with quantities increasing from 70,247 tons in July 2022 to 121,814 tons in July 2023. Exports from the South also experienced substantial growth of 277.13%, reaching 314,040 tons in July 2023 from 83,270 tons in the same month of the previous year.
Despite the positive outlook compared to the previous year, the spokesperson of All Pakistan Cement Manufacturers Association expressed concerns over the monthly sales, as domestic despatches in July 2023 were approximately 20% less than June 2023, indicating a decline on a monthly basis. The rising cost of production, including increased royalty rates, electricity costs, and fuel prices, has impacted the sector. However, the spokesperson remained optimistic about the current fiscal year, expecting improvements due to investments in large-scale projects.
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