Lahore: Total cement sales went down by a whopping 16 percent in May 2022 as international demand decreased causing a construction slowdown in the entire country.
The slowdown was prompted by higher interest rates and snagging domestic demand due to political uncertainty.
Data released by the All Pakistan Cement Manufacturers Association (APCMA) showed that cement sales declined to 3.32 million tonnes – 15.85 percent – in May 2022, against 3.94 million tonnes sold during the corresponding month last year.
Domestic sales in May 2022 went down by 1.6 percent to 3.15 million tonnes compared to 3.2 million tonnes in the same month in 2021. Moreover, in May this year, exports dropped 76.97 percent to 171,915 tonnes from 746,550 tonnes in May 2021.
APCMA data signified that north-based plants dispatched 2.57 million tonnes of cement in the domestic market, showing a 5.16 percent decline against 2.71 million tonnes laid forth in May 2021. South-based manufacturers released 576,385 tonnes of cement locally during May 2022, which was 18.28 percent higher compared to 487,311 tonnes in May 2021.
Experts linked the drop in exports to “softer cement demand because of higher interest rates”.
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