Karachi: The capacity utilization of cement sector reached its lowest at 69.67% in past one decade in the first two quarters of 2011-12 that ended on December 31, 2011 while exports continued to decline offsetting the gains in local consumption.
The cement industry ended the year 2011 not on a very encouraging note. The capacity utilization of the industry stood at 81.53 percent in 2007-08 that has gradually declined to its present level, giving nightmares to the cement manufacturers.
“The expected turn around in the economy did not materialize as the capacities of the sector continued increasing,” said a spokesman of All Pakistan Cement Manufacturers’ Association (APCMA). He said that expansions in cement sector were planned six years back when the economy was moving. The prolonged recession of recent years and drying of government development programs have played havoc with the viability of the cement sector.
He said that the domestic demand in December was encouraging, showing a growth of over 13 percent. This compensated to some extent the decline of 5.12 percent in local demand in November. He said that exports, however, remained under pressure during the last six months posting decline in four of the last six months. The exports declined by over 8 percent in December. The overall decline in exports stood at 4.58 percent during July-December 2011 period.
Cement units located in South registered a healthy growth of 19.2 percent in the local market but posted even higher 20.02 percent decline in exports in the first six months of this fiscal. The majority of the cement capacity however is located in the Northern part of the country where the industry posted a modest gain of 6 percent in domestic market and even lower increase of 2.51 percent in exports.
The total cement despatches in the first two quarter of this year was 15.40 million tons which was 4.21 percent higher than the cement despatches of 14.78 million tons during corresponding period last year.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription