The construction activities slowed down in the month of July due to the heavy monsoon and the Eidul Azha, accordingly, the local and international demand for cement also reduced.
The statement of the All Pakistan Cement Manufacturing Association (APCMA) confirms that the cement sector showed negative growth during the first month of the current fiscal year.
The data of APCMA shows that the dispatches during this month were 3.899 million tons as compared to 4.838 million tons during the same month, last year. In July 2020, 3.953 million tons of cement was sold in the local market as compared to 3.446 million tons in the same month this year. This shows a decline of 12.8%.
In the same way, 885,255 tons of cement was exported in July 2020 whereas, in July this year, 452,776 tons of cement was exported which shows a decline of 49%.
Cement demand loses strength in northern region
In the northern region of the country, there was a bigger fall in the demand for cement. During the month of July this year, 2.892 million tons of cement was consumed here whereas, in the month of July, last year, 3.435 million tons of cement was consumed in the northern region, showing a reduction of 15.81%.
The exports from the northern region were 122,823 tons in July 2020 which increased by 10.42% to 135,618 million during the same month this year.
The southern region, however, performed well in the domestic market as 554,442 tons of cement was sold locally during July, this year as compared to 517,850 tons during the same, last year, showing an increase of 7.07%.
During the month of July 2020, 762,432 tons of cement were exported whereas during the same month, this year, 317,159 tons were exported, showing a big decline of 58.40%.
A source of APCMA expressed concern over the present state of cement demand but he was hopeful about the future. He appreciated the measures of government which it is taking to promote the construction industry.