Cement Sector Concerned Over Domestic Sales Dip

The cement industry has voiced concerns over the 1.94% decline in local cement consumption during the initial eleven months of the current fiscal year, emphasizing the need for thorough investigation. They highlight that domestic demand is crucial for utilizing the sector’s surplus capacity and fostering overall economic growth.

According to a representative from the All Pakistan Cement Manufacturers Association (APCMA), the cement sector stimulates growth in related industries such as steel, paint, and electrical components. Increased construction activity is expected to provide a boost to the entire economy.

The APCMA representative expressed optimism that the government will address the industry’s concerns in the upcoming budget. They hope for the implementation of measures that lower duties and taxes on cement, making it more accessible to the general public.

Sales and Export Performance

Data released by the APCMA reveals a 1.94% year-on-year decrease in domestic cement sales during the first eleven months of the current fiscal year. Volumes fell from 35.1 million tons between July 2023 and May 2024 to 34.4 million tons between July 2024 and May 2025. However, exports showed a 25.73% increase, contributing to a modest overall sector growth of 2.46% during this period.

In May 2025, total cement dispatches rose by 8.57%, reaching 4.651 million tons compared to 4.284 million tons in the same month of the previous fiscal year. Local cement dispatches in May 2025 amounted to 3.662 million tons, up from 3.362 million tons in May 2024, reflecting an 8.93% increase. Export dispatches also increased by 7.27%, with volumes rising from 0.922 million tons in May 2024 to 0.989 million tons in May 2025.

Regional Performance

Cement mills located in the north of the country dispatched 3.261 million tons in May 2025, marking an 11.87% increase compared to the 2.915 million tons dispatched in May 2024. Southern mills dispatched 1.39 million tons of cement in May 2025, a 1.54% increase from the 1.379 million tons dispatched in May 2024.

Domestic dispatches from northern mills in May 2025 totaled 3.02 million tons, representing a 9.71% increase compared to the 2.753 million tons dispatched in May 2024. Southern mills dispatched 641,894 tons in local markets during May 2025, a 5.37% increase from the 609,174 tons dispatched in May 2024.

Exports from northern mills saw a substantial increase of 48.27%, with quantities rising from 162,929 tons in May 2024 to 241,578 tons in May 2025. Conversely, exports from the south decreased by 1.53%, from 759,456 tons in May 2024 to 747,856 tons in May 2025.

Cumulative Performance

During the first eleven months of the current fiscal year, total cement dispatches (domestic and exports) reached 42.764 million tons, a 2.46% increase compared to the 41.739 million tons dispatched during the same period last year. Domestic dispatches during this period amounted to 34.419 million tons, a 1.94% decrease from the 35.102 million tons during the same period last year. On the other hand, export dispatches demonstrated a robust increase of 25.73%, with volumes jumping to 8.345 million tons during the first eleven months of the current fiscal year, compared to 6.637 million tons in exports during the same period last year.

Northern mills dispatched 28.489 million tons of cement domestically during the first eleven months of the current fiscal year, a 1.53% decrease compared to the 28.931 million tons dispatched between July 2023 and May 2024. Exports from the north increased by 9.47% to 1.476 million tons during July 2024-May 2025, compared to 1.348 million tons exported during the same period last year. Total dispatches by northern mills decreased by 1.04% to 29.965 million tons during the first eleven months of the current financial year, from 30.279 million tons during the same period of the last financial year.

Domestic dispatches by southern mills during July 2024-May 2025 were 5.930 million tons, a 3.90% decrease compared to the 6.171 million tons dispatched during the same period of the last fiscal year. Exports from the south increased by 29.88% to 6.868 million tons during July 2024-May 2025, compared to 5.288 million tons exported during the same period last year. Total dispatches by southern mills increased by 11.69% to 12.799 million tons during the first eleven months of the current financial year, from 11.459 million tons during the same period of the last financial year.