Cement sales register growth of 3.55%
Eid holidays, new property valuations weakened domestic demands. PHOTO: REUTERS
LAHORE: Cement sales registered a slight increase of 3.55% in September 2016, a marginal rise of 2% as far as the domestic market is concerned.
One of the key reasons for a low rise was a slack in domestic demand. However, growth in cement exports to India accounted for half of the gross growth. The main reasons cited for the slowdown in domestic growth were Eidul Azha holidays and changes in property valuation policy. It was the first time in more than 15 months that growth in exports exceeded growth in domestic consumption.
Spokesman for the All Pakistan Cement Manufacturers Association said that domestic despatches in September amounted to 2.536 million tons, registering a growth of 2%, while exports amounted to 0.523 million tons, reflecting a growth of 11.79% compared to September 2015. Total cement despatches in the month amounted to 3.059 million tons depicting a growth of 3.55%. Industry hopes that the slow growth in domestic consumption is a one off phenomenon, triggered by the new property valuation policy of the government.
Quarter
On a quarterly basis, according to data released by APCMA, the cement industry posted a growth of 9.50% in local despatches in the Jul-Sep quarter compared to the same period last year.
During the Jul-Sep quarter of 2016, the industry despatched 8.976 million tons of cement, while during the corresponding period last year the total despatches were 8.286 million tons.
Original news : http://tribune.com.pk/story/1194766/cement-sales-register-growth-3-55/