Cement sector’s performance in the month of August 2021

All Pakistan Cement Manufacturers Association (APCMA) has posted data about the growth of cement industry in the month of August 2021. A rise of around 22.77 percent as total cement despatches has been observed. However, exports despatches continued to decline as the volumes reduced from 726,687 tons in August 2020 to 521,468 tons in August 2021, decreasing by 28.24 percent. Exports from North based mills showed decline of 33.14% as the quantities reduced from 212,076 tons in August 2020 to 141,804 tons in August 2021. Exports from South also reported a decrease of 26.22 percent to 379,664 tons in August from 514,611 tons during the same month last year. Domestic despatches by South based Mills during July-August 2021 were 1.228 million tons showing healthy increase of 50.01 percent over 818,600 tons cement despatched during the same period of last fiscal year.  Regarding the upward journey of cement prices, APCMA spokesman has penned down his thoughts as the landed price of coal has increased multiple times. Moreover, the electricity rate was Rs 11.68 per unit in August 2018 is now Rs 19.40 per unit. This has badly impacted the cost of production by around Rs. 35 per bag. Due to this, cement industry is continuously facing delays in unloading of coal shipments, resultantly paying demurrages and incurring extra costs on its operations.