Cement Sales Drop Continues Industry Faces Tough Times
Pakistan's cement sector sees a surge in exports, but domestic sales continue to fall in October, indicating a challenging market amid slowed construction activity.
In October, Pakistan's domestic cement sales dropped slightly by 0.49% compared to the same month last year, while sales for the July-October period plummeted by 15%. Data from the All Pakistan Cement Manufacturers Association (APCMA) shows that local cement dispatches for October reached 3.276 million tonnes, down from 3.292 million tonnes in October 2023.
Despite weak domestic demand, cement exports surged by 51.29%, climbing to 1.08 million tonnes from 714,325 tonnes last year. This boost in exports helped lift total cement dispatches (domestic and export combined) for October 2024 to 4.357 million tonnes, marking an 8.74% increase year-over-year.
For the first quarter of FY25, total dispatches declined by 8%, with domestic dispatches down by 15% and exports rising by 31%. The cement sector’s capacity utilization also saw a slight increase, reaching 60% in October compared to 57% in September 2024.
Challenges remain in the domestic market, with declining local sales and lower average retail prices in the northern region, indicating a continued slump in the construction and building sectors. While exports have provided some relief, the industry still faces pressure due to reduced construction activity in Pakistan.
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