The aggregate cement dispatches in Sep’15 decline to 2.9 million tons from 3.2 million tons in Sep’14, a fall of 8% YoY. The decline was steeper in Southern region as compared to Northern region.
In local market cement demand continued to grow owing to increase in public and private sector construction projects. This resulted in an annual growth of 2%YoY in Sep’15 to 2.5 million tons as compared to 2.4 million tons in Sep’14.
On flip side export market for cement continued its downward trajectory and declined by colossal 40%YoY to 0.44 million tons in Sep’15 as compared to 0.73 million tons in Sep’14.
Regional analysis of cement dispatched for the month under review reveals that northern region recorded an increase of 3%YoY in local dispatches to 2.05 million tons, whereas export plummet by 42%YoY to 0.28 million tons. Southern region experienced a declining trend in its local sales down by 4%YoY to 0.41 million tons while export volumes dropped by 35%YoY to 0.16 million tons in Sep’15.
On quarterly basis, total industry dispatches rose by meager one percent YoY to 8.22 million tons in 3MFY16 from 8.16 million ton during 3MFY15. While local market showed 11%YoY surge in dispatches to 6.75 million tons whereas export declined by 29%YoY to 2.06 million tons.
Company wise monthly and yearly analysis revealed a mix trend in overall companies’ sales figures. On MoM basis dispatches grew for few companies, sales of majority of the companies dropped. While on yearly basis the highest growth in dispatches was registered by FCCL, followed by PIOC, MLCF & DGKC.
Going forward analysts expect the overall industry dispatches to further improve specifically in local market owing to higher private and public sector construction projects and positive triggers from mega construction projects under CPEC.
However, falling exports are alarming but this decline would be adjusted by increase in local dispatches. The security situation has improved in the country which will boost construction activities in the country.