Pakistan Cement Industry created a new benchmark by dispatching 3.74 million tons of cement in the month of November 2016 against 3.37 million tons shipped in November 2015.
According to data released by the All Pakistan Cement Manufacturers Association (ACPMA) on Monday, cement sales in the local market rose 15% as domestic demand grew on construction activities and infrastructure development.
Despite the jump in domestic sales, however, exports fell 10.4 % to 478,000 tons during November, 2016 as a result of losing market share in Afghanistan.
“The industry has been observing a decline in exports since the beginning of this fiscal year and the worst was seen in November,” a spokesperson at the All Pakistan Cement Manufacturers Association (APCMA) said. “Exports are likely to remain under pressure as Iran penetrates Afghanistan’s market and exports by sea are also on the downward trend.”
During the first five months of fiscal year (2016-2017), the cement industry dispatched 13.709 million tons of cement, marking a rise of 12.13 % as compares to the 14.788 million tons in the corresponding period of the last fiscal year.
Cement mills in the north of Pakistan dispatches 11.305 million tons for domestic consumption and 1.702 million tons for exports during the period of July to November. The said dispatches recorded growths of 11.05% in domestic consumption and 4.30% in exports.
Mills in the south of the country recorded a sale of 2.404 million tons and export of 0.839 million tons, marking a rise of 17.49% in domestic sales and a decline of 9.72% in exports. The continued growth in the domestic demand can be a result of increased infrastructural development in the country being executed by both the federal and provincial governments.
APCMA spokesperson said exports may continue to see a declining trend as Iran has entered Afghan market and exports by sea has been falling as a result.