Cement dispatches down by 1pc in May 2013

Attention: open in a new window. PDFPrintE-mail



LAHORE: Cement dispatches declined by one percent in May 2013 to 2.888 million tons against 2.918 million tons in the same period last year due to strict adherence to the axle load limit rule imposed by the national highway and motorway authorities.

 

In the first 11 months of the current fiscal year, the cement industry dispatched 30.552 million tons against 29.495 million tons in the same period last fiscal. A spokesman of All Pakistan Cement Manufacturers Association stated that the axle load limit has increased the charges for cement transportation, thereby impacting overall sale of cement. “The industry now requires twice the number of trucks to transport the same volume of goods that were earlier transported in order to keep the wheels of the industry running,” he said. He added that for decades the axle weight rule was relaxed, which allowed trucks to carry extra quantities.

 

The spokesman said that in May 2013, cement units located in the northern parts of the country dispatched 1.714 million tons of cement for the domestic market and 0.571 million tons for exports to Afghanistan and 0.061 million tons to India. Similarly, the mills located in the southern part of the country provided 0.389 million tons of cement for the domestic market and 0.214 million tons for exports. The cumulative cement dispatches in May 2013 stood at 2.888 million tons against 3.123 million tons in April 2013.

 

“The industry’s capacity utilisation has reached its highest level of 74.45 percent since 2006-07 as domestic dispatches have increased during the year,” he said. “Exports have declined substantially in the past five years from 10.981 million tons in 2008-09 to 7.709 million tons in the first eleven months of this fiscal.”

 

He added that the expectation of increasing exports to India failed to materialise due to India’s non-tariff barriers (NTBs). He hoped that the new government would take up the issue of NTBs with the Indian government on a priority basis to increase the country’s exports. Cement exports stood at 7.709 million tons in the first 11 months of the current fiscal year against 7.837 million tons in the same period last fiscal.



Courtesy:  The News


Forex open Market rates & comments Archive

Login Form