Cement industry is under pressure since beginning of FY 2022: Economic Survey

ISLAMABAD, Jun 9 (APP): The cement industry remained under pressure since the beginning of FY2022. This was largely attributed to a revival in construction activities in the second half of 2020 as COVID-19 lock downs were eased.
According to the Survey, the demand for cement was ‘sluggish’ due to inflation and high commodity prices. It also pinned its marked fall in exports because of political and economic instability in Afghanistan.
Cement industry showed a decline of 6.3 percent in March FY2022 on Y-o-Y basis due to massive decline in exports. Total cement dispatches stood at 5.04 million tonnes (mt) as against 5.38 mt last year. Domestic consumption grew by 4.02 percent and reached 4.75 mt as compared to 4.56 mt in March FY2021.
The largest hit was observed by exports which drastically decreased by 63.8 percent to 0.30 mt dispatches in March FY2022 as compared to 0.82 mt during same period last year. This was largely attributed to rising international freight rates, political and economic instability in Afghanistan and a trade ban with India.
Northern Region Domestic consumption in the north recorded at 3.85 mt in March FY2022 as compared to 3.81 mt dispatches in the same month last year thus showing a slight growth of 1.07 percent.
Exports from north plummeted by 71.3 percent and stood at 0.08 mt during the period as compared to 0.28 mt same period last year. Southern Region Domestic consumption in the south increased by 18.9 percent and reached to 0.90 mt in March FY2022 as compared to 0.75 mt in March FY2021. While exports from the region decreased by 59.8 percent, from 0.53 mt to 0.21 mt in March FY2022.
Cumulative dispatches and total local dispatches during July-March FY2022 slightly decreased by 0.03 percent to 36.17 mt from 36.18 mt last year. While, total exports clocked in at 4.64 mt (-35.04 percent) against 7.15 mt during the same period last year.
Local dispatches from the northern region decreased by 2.27 percent, while southern region dispatches surged by 12.3 percent. Exports from the north nosedived by 64.5 percent, while south witnessed fall of 24.3 percent growth during the period. Cumulative dispatches (local & exports) posted a decline of 5.8 percent and reached 40.82 mt during
July-March FY2022 against 43.32 mt in the corresponding period.