Domestic cement sales saw a decline of 38% to 2.27 million tons in May 2020 from 3.64 million tons in May 2019.
The impact of the construction package announced by the government is yet to be seen.
This is the third consecutive time that cement sales saw a double-digit monthly decline in the current fiscal year.
The decline in cement sales was mainly due to the Holy month of Ramzan, Covid-19, and Eid holidays which slowed down the construction activities in the country.
According to the data released by All Pakistan Cement Manufacturers Association (APCMA), cement sales were only 2.63 million tons in May 2020 for both export and local consumption against the sales of 4.12 million tons during the corresponding month of last fiscal year, which shows a decrease of 36.12 percent.
According to a spokesperson of APCMA, “The cement sector has been in a dire state for the last few months. It posted a growth of 31% in domestic cement consumption in February this year and after that, the decline has been consistent, 16.69% in March, 18.97 percent April and now 38% in May,” said a spokesperson of APCMA.
“The negative growth is due to COVID-19 impact and the delay in implementing public sector development projects.”
Moreover, exports decreased by 24.81% to 0.363 million tons in May 2020 from 0.483 million tons in May 2019.
During the first eleven months of this fiscal year, the total cement sales were 43.189 million tons against 43.327 million tons during the same period last fiscal year posting a decline of 0.32%.
The domestic consumption during the first eleven months of this fiscal declined by 2.72%, cement sales declined to 36.13 million tons in current fiscal from 37.14 million tons in the last corresponding period.
While exports increased by 14.07%, export sales increased to 7.059 million tons during the eleven months of current fiscal from 6.188 million tons in the corresponding period last year.