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KARACHI: A construction slowdown amid uncertain economic conditions reduced the demand for cement by nine per cent in February and 13.4pc in 8MFY23.
In February, total cement despatches stood at 4.040 million tonnes as against 4.348m tonnes, down by 7pc. Local sales were 3.590m tonnes compared to 3.943m tonnes in February 2022. However, exports increased by 11pc to 449,940 tonnes from 405,489 tonnes in February 2022.
During 8MFY23, total cement despatches (domestic and exports) were 29.81m tonnes, showing a drop of 16.65pc from 35.763m tonnes during the corresponding period of the last fiscal year. Domestic sales were 27.207m tonnes as against 31.416m tonnes. Exports were also 40.15pc less shrinking to 2.602m tonnes during the first eight months of the current fiscal year from 4.348m tonnes during 8MFY22.
A spokesman of the All Pakistan Cement Manufacturers Association (APCMA) emphasised that the economic situation has deteriorated further posing serious operational problems.
“We need a timely supply of spare parts and consumable items to ensure the stable operation of our plants. We urge the government to come up with practically applicable and industry-friendly policies to enable the industry to come out of this difficult situation,” he added.
Sunny Kumar of Topline Securities said lower off takes in local cement despatches during the last eight months was on the back of rising construction cost and inflationary impact restricting the demand growth.
He said exports in 8MFY23 came down on the back of a global economic slowdown and unfavourable export pricing.
Capacity utilisation during February clocked in at 62pc with an 8MFY22 average of around 59pc, he added.