Displaying items by tag: despatches

Peru: National cement despatches reached 0.97Mt in December 2024, a 0.1% year-on-year increase, according to the Cement Producers Association (Asocem). Total despatches in 2024 were nearly 12Mt, marking just a 0.01% rise compared to 2023, indicating stagnation in the sector.

Asocem members produced almost 0.92Mt of cement in December 2024, a 1% year-on-year decrease, and recorded a 3% decline in 2024 to 11Mt. Cement exports from members rose by 70% year-on-year in December 2024 to 0.13Mt, but fell by 8% for the full year. Imports increased to 3000t in December 2024, up by 22% year-on-year, and grew by 29% over 2024, with Chile as the sole supplier.

Clinker production by Asocem members dropped by 30% year-on-year in December 2024 to 0.66Mt, and by 8% over the 2024 period. No clinker was exported by Asocem members, a 100% year-on-year decrease from December 2023. Clinker imports surged by 376% year-on-year in December 2024 to 0.2Mt, sourced from South Korea (44%), Japan (24%), Ecuador (19%) and Turkey (13%).

Argentina: Cement despatches dropped by 24% year-on-year to 9.56Mt in 2024, the lowest annual level reported since 2009, according to the Association of Portland Cement Manufacturers. Total dispatches in 2024 reached 9.5Mt, 24% lower compared to 2023 when dispatches were 12.5Mt. Dispatches in December 2024 showed the lowest yearly percentage decline, falling by 5% year-on-year to 0.77Mt, 12% less than was recorded in November 2024. This marks 21 consecutive months of declines. The declines recorded from December 2023 coincide with the decision announced by President Javier Milei to end the execution of public works by the national government.

Pakistan: December 2024 saw mixed results for cement despatches, according to data published by the All Pakistan Cement Manufacturers Association. Local despatches declined by 5% year-on-year, falling to 3.37Mt from 3.54Mt in December 2023. Overall, total cement despatches for December 2024 stood at 4.15Mt, up by 2% from 4.06Mt year-on-year. For the first half of the fiscal year, total despatches decreased by 4% to 22.9Mt. Domestic despatches saw a significant drop of 10%, totalling 18.1Mt. Exports, however, witnessed a 32% increase, reaching 4.81Mt during this period. In December 2024, exports reached 0.78Mt, a 49% year-on-year increase from 0.53Mt in December 2023.

Pakistan: In November 2024, there was a 6% increase in total cement despatches, reaching 4.15Mt compared to 3.93Mt in November of the previous fiscal year, according to the All Pakistan Cement Manufacturers Association (APCMA).

Local cement despatches during November 2024 were 3.34Mt, reflecting a 2% year-on-year increase from 3.27Mt in November 2023. Exports rose by 21% year-on-year, from 662,374t in November 2023 to 803,258 tonnes in November 2024. However, the first five months of the current fiscal year saw a 5% decline in total cement despatches, amounting to 18.8Mt, down from 19.8Mt during the same period last fiscal year. Domestic despatches fell by 12% to 14.8Mt, while exports experienced a 29% year-on-year increase, reaching 4.02Mt.

An APCMA spokesperson noted that domestic cement sales could improve if the government reduced duties and taxes, which would lower consumer costs and boost demand, helping to utilise the sector's idle capacity.

Pakistan: Attock Cement expects that its cement despatches will decline by 10% year-on-year in the 2025 financial year. During a corporate briefing it revealed that local despatches of cement had fallen by 20% year-on-year to 7.91Mt in the first quarter to 30 September 2024 from 9.87Mt in the same period in 2023, according to the Pakistan Press International news agency. The decrease was more pronounced in the south of the country than the north. Despite this, exports grew by 22% to 2.14Mt. The company’s turnover and profit also fell during the reporting period.

The company is currently investing US$4.5m in a 4.8MW wind power unit. The project is intended to reduce the company’s reliance on the local electricity grid and reduce power costs generally. It is expected to become operational from January 2025. The cement producer is also planning to increase its usage of alternative fuels to further bring down production costs.

Pakistan: Despite low domestic cement demand, exports rose in October 2024, with total despatches reaching 4.36Mt, a 9% increase compared to 4Mt in October 2023. The All Pakistan Cement Manufacturers Association reported a 51% increase in export despatches, from 714,325t in October 2023 to 1.1Mt in October 2024. This increase offset the slow local market demand, which saw a minor decline of 0.5% in domestic despatches to 3.28Mt from 3.3Mt.

Over the first four months of the 2024 financial year (July – October 2024), total cement despatches (domestic and exports) fell by 8% to 14.6Mt from 16Mt in the previous year's corresponding period. Domestic despatches decreased by 15% to 11.4Mt, whereas exports grew by 31%, reaching 3.2Mt from 2.5Mt.

Peru: National cement dispatch fell by 2% year-on-year to 1.06Mt in September 2024, according to a report by ASOCEM, the cement manufacturers’ association of Peru. Cement production rose slightly by 0.2% year-on-year to 997,000t, while clinker production dropped by 19% to 661,000t. Cement exports declined by 1% year-on-year to 11,500t, and clinker exports decreased by 45% to 37,400t. However, cement imports increased by 0.5% compared to September 2023 to 21,000t, and clinker imports rose by 34% to 84,000t.

Pakistan: The cement industry in Pakistan is experiencing a significant decline, with local dispatches for September 2024 projected to fall by 22% year-on-year to approximately 2.79Mt. This decline is reportedly due to a slowdown in construction activities, exacerbated by rising costs of construction materials. According to Topline Pakistan Research, local cement sales for the first quarter of the financial year 2025 are also expected to decrease by 21% compared to the same period in 2023.

Despite a slight month-on-month increase in dispatches from 2.75Mt in August 2024, the year-on-year data highlights a continuing slump in construction and a sharp increase in cement prices. However, there cement exports are projected to increase by 27% month-on-month and 36% year-on-year. Total cement sales for September are estimated at 3.56Mt, marking a 14% decline year-on-year but a 6% increase from August 2024. Capacity utilisation in the sector is estimated at 52% for September 2024, an improvement from August 2024’s 47% but still below the 60% recorded in September 2023.

Pakistan: The cement industry reported a decline in overall despatches from 3.23Mt in July 2023 to 3.01Mt in July 2024, marking a 7% year-on-year fall. Domestic despatches decreased by 11%, while exports rose by 22%, according to The News International.  

A spokesperson for the All Pakistan Cement Manufacturers Association said "Higher taxes and increased input costs are affecting the country's cement sector. This is the 11th straight month during which domestic despatches are showing a declining trend due to sluggish economic activity in the country. The cement industry urges the government to review its taxation policies to reduce the burden of heavy taxes on this important sector of the economy."

Changes are underway in South Asia’s second largest cement sector, with two legal developments that affect the industry set in motion in the past week. At a national level, the Competition Commission of Pakistan recommended that the government require cement producers to include production and expiry dates on the labels of bagged cement. Meanwhile, in Pakistan’s largest province, Punjab, a new law tightened procedures around the establishment and expansion of cement plants. At the same time, the country’s cement producers began to publish their financial results for the first nine months of the 2024 financial year (FY2024).

During the nine-month period up to 31 March 2024, the Pakistani cement industry sold 34.5Mt of cement, up by 3% year-on-year. Producers have responded to the growth with capacity expansions, including the launch of the new 1.3Mt/yr Line 3 of Attock Cement’s Hub cement plant in Balochistan on 17 April 2023. China-based contractor Hefei Cement Research & Design executed the project, including installation of a Loesche LM 56.3+3 CS vertical roller mill, giving the Hub plant a new, expanded capacity of 3Mt/yr.

Pressure has eased on the operating costs of Pakistani cement production, as inflation slowed and the country received a new government in March 2024, following political unrest in 2022 and 2023. Coal prices also settled back to 2019 levels, after prolonged agitation. Pakistan Today News reported the value of future coal supply contracts as US$93/t for June 2024, down by 2% over six months from US$95/t for January 2024.

Nonetheless, cost optimisation remained a ‘strong focus’ in the growth strategy of Fauji Cement, which switched to using local and Afghan coal at its plants during the past nine months. Its reliance on captive power rose to 60% of consumption, thanks to its commissioning of new waste heat recovery and solar power capacity. During the first nine months of FY2024, the company’s year-on-year sales growth of 14% narrowly offset cost growth of 13%, leaving it with net profit growth of 1%.

Looking more closely, the latest sales data from the All Pakistan Cement Manufacturers Association (APCMA) shows a stark divergence within cement producers’ markets. While exports recorded 68% year-on-year growth to 5.1Mt, domestic sales fell, by 4% to 29.4Mt. The association further breaks down Pakistani cement sales data into South Pakistan (Balochistan and Sindh) and North Pakistan (all other regions). Domestic sales dropped most sharply in South Pakistan, by 6% to 5.16Mt. In the North, they dropped by 3% to 24.2Mt. Part of the reason was a high base of comparison, following flooding-related reconstruction work nationally during the 2023 financial year. Meanwhile, the government finished rolling out track-and-trace on all cement despatches during the opening months of the current financial year, and commenced the implementation of axle load requirements for cement trucks. APCMA flagged both policies as potentially disruptive to its members’ domestic deliveries, amid a strong infrastructure project pipeline.

Pakistani producers suffer from overcapacity, but have established themselves as an important force in the global export market. They continue to locate new markets, including the UK in January 2024. Lucky Cement was among leading exporters overall, with a large share of its orders originating from Africa.

On 17 April 2024, the government of Punjab province set up a committee to assess new proposed cement projects, with the ultimate goal of conserving water. Falling water tables are considered a significant economic threat in agricultural Punjab. Besides completing an inspection by the new committee, proposed projects must also secure clearance from six different provincial government departments and the local government. While acknowledging the necessity of the cement industry, the government insisted that it will take legal action against any cement plant that exceeds water allowances.

Pakistan’s cement plants have grown in anticipation of a local market boom. Without this strong core of sales, underutilisation will remain troublesome, especially in North Pakistan where exposure is highest. At the same time, APCMA has given expression to the perceived lack of support affecting production and distribution. For an industry with expansionist aims, new restrictions on its growth and operations can feel like an existential menace.