Cement Sector Sales Decline Amid Export Growth in FY25

LAHORE: The cement sector experienced a contraction in domestic sales, which fell to 37.017 million tons during the fiscal year 2024-2025. This represents a 3.05% decrease compared to the 38.181 million tons sold in the previous fiscal year, ending June 30, 2024.

The All Pakistan Cement Manufacturers Association (APCMA) has urged the government to lower duties and taxes, arguing that cement is a fundamental necessity rather than a luxury.

A spokesperson for the industry stated on Wednesday, “We need to identify methods to boost domestic consumption to utilize the existing surplus capacity. This would foster economic expansion, create job opportunities, and increase revenue for related sectors.”

However, the export sector demonstrated considerable strength, achieving a growth rate of 29.46%. Export volumes increased to 9.204 million tons in the fiscal year ending June 30, 2025, compared to 7.110 million tons in the prior fiscal year. Overall, the cement industry saw a slight increase of 2.05% during the fiscal year concluding on June 30, 2025, with total volumes reaching 46.221 million tons, up from 45.291 million tons in the last fiscal year.

Regional Performance

In FY25, cement mills located in the north dispatched 30.726 million tons domestically, marking a 2.60% drop from the 31.545 million tons dispatched between July 2023 and June 2024. Exports from the north rose by 15.56% to 1.684 million tons during July 2024-June 2025, compared to 1.457 million tons in the preceding fiscal year. The total dispatches from North-based mills decreased by 1.79%, totaling 32.410 million tons in the fiscal year ending June 30, 2025, down from 33.002 million tons the year before.

South-based mills recorded domestic dispatches of 6.291 million tons from July 2024 to June 2025, a 5.21% decrease from the 6.636 million tons dispatched in the prior fiscal year. Exports from the south showed a substantial increase of 33.04%, reaching 7.519 million tons during the same period, compared to 5.652 million tons exported in the last fiscal year. Total dispatches by South-based mills increased by 12.38%, amounting to 13.811 million tons in the fiscal year ending June 30, 2025, up from 12.289 million tons in the previous fiscal year.

Monthly Performance

During June 2025, the industry’s local cement dispatches amounted to 2.597 million tons, compared to 3.079 million tons in June 2024, indicating a 15.65% decline. Conversely, export dispatches surged by 81.70%, with volumes rising from 472,865 tons in June 2024 to 859,204 tons in June 2025. Total cement dispatches in June 2025 reached 3.457 million tons, against 3.552 million tons dispatched in the same month of the previous fiscal year, representing a 2.69% decrease.

In June 2025, North-based cement mills dispatched 2.445 million tons, a 10.21% decrease compared to the 2.723 million tons dispatched in June 2024. South-based mills dispatched 1.01 million tons during June 2025, which is 21.99% higher than the 0.830 million tons dispatched in June 2024.

Domestic cement dispatches from North-based mills in June 2025 totaled 2.237 million tons, a 14.43% decrease from the 2.614 million tons dispatched in June 2024. South-based mills dispatched 360,814 tons in local markets during June 2025, a 22.50% decrease compared to the 465,578 tons dispatched in June 2024.

Exports from North-based mills increased by 91.05%, from 108,861 tons in June 2024 to 207,975 tons in June 2025. Exports from South-based mills also increased significantly by 78.91%, reaching 651,229 tons in June 2025 from 364,004 tons during the same month last year. The APCMA, in releasing this data, highlighted that decreasing domestic demand is a significant obstacle to the cement industry’s growth.