The first quarter of FY24 has witnessed a notable resurgence in construction activities, with domestic cement sales experiencing a significant uptick of 17.7%, reaching 10.122 million tonnes compared to 8.602 million tonnes in the same period of the previous fiscal year. This impressive growth can be attributed to the revival of demand in the construction sector.
Exports have also shown remarkable expansion during the first three months of FY24, with a staggering 72% increase in cement exports, soaring to 1.751 million tonnes from 1.019 million tonnes in the corresponding period last year. This surge can be attributed to the devaluation of the Pakistani rupee in July and August 2023.
Consequently, the total cement despatches, including both local and export markets, surged by 23.4%, reaching 11.873 million tonnes from 9.621 million tonnes in 3MFY23. Cement exports found their way to destinations like Sri Lanka, Bangladesh, and West Africa, indicating a broader global demand.
The robust domestic cement sales during July-Sept 2023 can be attributed to favorable market conditions, as July-August 2022 had experienced floods. In response to the rising construction activities, steel bar manufacturers increased prices by Rs10,000 per tonne in August, with hints of further increases in September, despite the rupee’s appreciation since September 5.
However, in September 2023, total cement despatches (domestic and export) amounted to 4.115 million tonnes, showing a slight decline of 4% compared to the same month in 2022. Local sales in September 2023 were 3.544 million