Pakistan's cement industry sees 9% growth in October 2024, driven by robust exports

Pakistan’s cement industry reported an 8.7 per cent increase in total dispatches for October 2024, reaching 4.357Mt compared to 4.006Mt in the same month last year, according to data from the All Pakistan Cement Manufacturers Association (APCMA). Local cement dispatches declined by 0.5 per cent to 3.276Mt, while exports surged by 51.3 per cent to 1.08Mt.

Usama Rauf of AKD Securities Ltd commented on the data, explaining that the annual decline in local sales is primarily due to a 21 per cent increase in cement prices YoY and lower public infrastructure spending. He added that, while local sales have declined, the rate of decline has eased.

Mr Rauf also highlighted a monthly uptick in local dispatches, attributing it to a post-monsoon recovery following extended rains in the previous month. Regarding exports, he pointed to a surge driven by improved profitability from lower coal prices compared to last year, with South-based exports further benefiting from reduced import levies on cement by the Sri Lankan government.

Dispatches by region

In October 2024 North-based mills dispatched 2.982Mt of cement, marking a 2.8 per cent increase over the 2.902Mt dispatched in October 2023. South-based mills dispatched 1.374Mt, a significant 24.5 per cent increase from 1.104Mt in October 2023.

Domestic dispatches by North-based mills remained stable at 2.779Mt in October 2024, compared to 2.78Mt in October 2023. South-based mills dispatched 496,626t domestically, a 3.1 per cent decrease from the 512,320t dispatched in October 2023.

Export dispatches from North-based mills rose by 65.8 per cent, reaching 202,858t from 122,326t in October 2023. South-based exports also grew by 48.3 per cent, increasing to 877,833t in October 2024 from 591,999t in the same month last year.

Cumulative dispatches (4MFY25)

In the first four months of FY25 (July-October 2024), total cement dispatches (domestic and exports) stood at 14.633Mt, a 7.9 per cent decrease from the 15.891Mt dispatched in the corresponding period of FY23-24. Domestic dispatches declined by 15 per cent to 11.41Mt, while export dispatches rose by 30.7 per cent, reaching 3.223Mt compared to 2.466Mt in 4MFY23-24.

North-based mills dispatched 9.643Mt during 4MFY24-25, down 13.2 per cent from the 11.113Mt dispatched in July-October 2023. North-based exports rose by 29 per cent to 709,959t, compared to 550,561t in the same period last year. Overall, total dispatches from North-based mills declined by 11.2 per cent to 10.353Mt in 4MFY24-25, down from 11.664Mt the previous year.

South-based mills saw a 23.6 per cent reduction in domestic dispatches, reaching 1.767Mt compared to 2.312Mt in the previous fiscal year. However, exports from the South increased by 31.3 per cent to 2.513Mt, up from 1.915Mt in FY23-24. Overall, total dispatches from South-based mills increased slightly by 1.3 per cent to 4.28Mt in 4MFY24-25, compared to 4.227Mt in the prior year. 

This data highlights the impact of seasonal factors, economic conditions and evolving export markets on Pakistan’s cement industry performance in the initial months of FY24-25, setting a varied outlook for the remainder of the fiscal year.

by Abdul Rab Siddiqui, Pakistan