Costly construction dampens cement demand

Construction slowdown on account of political uncertainty, floods and costly building materials caused a 15.5 per cent and 21pc drop in cement sales during October and 4MFY23, respectively. Export shipments also remained affected due to the economic slowdown in world markets. Hassan Bakshi, former chairman Association of Builders and Developers (ABAD), said lingering political and economic uncertainty and massive increase in prices of construction materials were the main reasons behind falling cement sales in addition to rain and floods in July and August. He said that despite the Rs30,000 per tonne dip in steel prices, the cost of construction had risen by at least 80pc in the last two and half years. Due to rising prices of food items and utility bills, many people cannot pay monthly installments for the apartments which they have booked recently.