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Home Real Estate

Apcma Reports a 21% Increase in Cement Exports for November 2024

TechX Editor by TechX Editor
December 9, 2024
in Real Estate
Reading Time: 4 mins read
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APCMA reports a 21% increase in cement exports for November 2024

The All Pakistan Cement Manufacturers Association (APCMA) has reported a notable growth in cement exports for November 2024. Exports surged by 21.27%, with dispatches reaching 803,258 tons, compared to 662,374 tons in November 2023. This significant rise reflects the growing demand for cement in international markets. The surge in exports played a pivotal role in the overall performance of the cement sector during the month.

Table of Contents

Toggle
  • Overall Cement Dispatches Show Positive Growth
  • Modest Rise in Domestic Cement Sales
  • North-Based Mills Show Stable Growth
  • South-Based Mills Lead with Stronger Export Growth
  • Decline in Cement Dispatches for Fiscal Year-to-Date
  • Exports Maintain Strong Momentum Year-to-Date
  • Regional Differences in Performance
  • Government Support Needed for Continued Growth
  • Conclusion

Overall Cement Dispatches Show Positive Growth

In addition to the export growth, the total cement dispatches in November 2024 saw an overall increase of 5.58%, reaching 4.146 million tons, up from 3.927 million tons in November 2023. This rise in dispatches indicates the cement sector’s ability to cater to both domestic and international demands effectively. The increase in exports and domestic sales underscores the resilience of the industry despite challenges in the local market.

Modest Rise in Domestic Cement Sales

Domestic cement sales also saw a modest growth of 2.39%, climbing to 3.342 million tons in November 2024, up from 3.264 million tons in the same month last year. This rise is a positive indicator of the local demand for cement, even though it remains lower than the surge in exports. It reflects steady consumption, which is crucial for maintaining a balance between domestic and international markets.

Also Read: Cement sales dropped by 5.78% in Pakistan in October 2023

North-Based Mills Show Stable Growth

Cement mills based in the northern region of Pakistan reported steady performance in November. Total dispatches increased by 2.01%, reaching 2.925 million tons. Notably, exports from the northern region saw a remarkable jump of 16.90%, reaching 168,265 tons. Domestic sales in the north also saw a slight uptick of 1.23%, totaling 2.757 million tons. This steady growth highlights the north’s contribution to the overall sector performance.

South-Based Mills Lead with Stronger Export Growth

South-based cement mills outperformed their northern counterparts in terms of export growth. Total dispatches from the southern region increased by 15.21%, reaching 1.220 million tons in November 2024. Exports from the south surged by an impressive 22.48%, reaching 634,993 tons. Additionally, domestic sales in the southern region rose by 8.24%, totaling 585,689 tons. These figures highlight the growing importance of the southern mills in meeting both local and international demand.

Decline in Cement Dispatches for Fiscal Year-to-Date

Despite the strong performance in November 2024, total cement dispatches for the first five months of the current fiscal year showed a decline of 5.24%. Dispatches fell to 18.779 million tons, down from 19.818 million tons during the same period last year. This decrease is largely attributed to a dip in domestic sales, which declined by 11.61%, although the export segment continued to grow robustly. This trend presents challenges for the industry as it strives to maintain overall growth.

Exports Maintain Strong Momentum Year-to-Date

While overall cement dispatches for the fiscal year have declined, exports continued to perform well. Exports for the first five months grew by 28.73%, reaching 4.027 million tons. This export growth is a bright spot in an otherwise challenging year for the cement sector. The international market demand has been key in sustaining growth, even as domestic demand has faced obstacles such as rising costs and local economic pressures.

Regional Differences in Performance

The performance of north-based and south-based cement mills has shown some divergence in the fiscal year-to-date figures. North-based mills saw an 8.62% decline in total dispatches, with domestic sales falling by 10.39%. However, exports from the north grew by 26.47%, reaching 878,324 tons. On the other hand, south-based mills reported a 4.05% increase in total dispatches, driven primarily by a 29.38% rise in exports, which reached 3.148 million tons. These figures highlight regional variations in performance.

Government Support Needed for Continued Growth

An APCMA spokesperson emphasized the need for government intervention to sustain the cement sector’s positive momentum. They suggested that lowering duties and taxes could reduce costs for consumers, boost local demand, and help the industry utilize its unused production capacity. The spokesperson pointed out that the export growth seen in November 2024 should be leveraged to strengthen the sector’s position in international markets, but this requires strategic support from the government.

Conclusion

The cement industry’s performance in November 2024 presents a mixed but promising outlook. The 21% surge in exports is a major achievement, but challenges remain in terms of domestic demand and overall dispatches for the fiscal year. As the industry continues to adapt to evolving market conditions, strategic interventions, including government support, will be essential to sustaining growth and ensuring a balanced performance across both domestic and international markets.

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