Cement industry witnesses decline in sales in start of FY20
Domestic sales of cement posted a decline of 5.49% in two months of FY20.
LAHORE (Web Desk) - Impact of economic contraction was visible in the cement sector as domestic sales of cement posted a decline of 5.49% in two months of FY20. Cement exports posted a healthy increase of 12.66 percent.
Regular contraction in construction activity played havoc for cement sector and capacity reached to 55.995 million tons where dispatches clocked at 46.88 million in FY19.
In last fiscal year cement surplus amounted to 9.12 million tons and domestic demand decreased by 2.55% to 2.97 million tons in July 2019 from 3.04 million tons in July 2018. Exports in July 2019 was 0.53 million tons registered a nominal 2%.
Domestic sales in August 2019 stood at 2.66 million tons which decreased by 8.58% as compared to 2.90 million tons in August 2018. Exports increased from 0.56 million tons in August 2018 to 0.68 million tons in August 2019.
Cement Association spokesman said consumption of cement determines the employment creation in the country. Decline in demand reduces volume of jobs attached to this sector, he said.
Cement industry currently is facing a torrid time and state has not helped its cause by slapping further tax on the industry this fiscal. Facilitating the construction industry could reduce the ever increasing unemployment in the country, he said.
