Pakistan's cement industry witnessed declining domestic cement dispatches in December 2024 while exports significantly increased. According to data released by the All Pakistan Cement Manufacturers Association (APCMA), domestic cement dispatches declined by 4.8 per cent to 3.37Mt in December 2024, compared to 3.539Mt in December 2023. Cement exports increased by 49.34 per cent to 783,550t in December 2024, compared to 524,656t in December 2023. Total cement dispatches during December 2024 were 4.154Mt, up 2.23 per cent from 4.063Mt in December 2023.

An APCMA spokesman expressed grave concerns over the continuous decline in local cement demand. He emphasised that local off-take plays a major role in the industry's economic growth. "Reduction of duties and taxes by the government can bring the cost of the commodity down, which can boost the sales and enable the sector to use its idle capacity," he added.

The annual decline in local sales is attributed to a slowdown in construction activity, due to higher prices. Meanwhile, Usama Rauf, the investment analyst at AKD Securities, commented that the annual export increase was supported by improved viability, aided by stable coal prices and lower domestic utilisation. However, on a sequential basis, while local dispatches remained largely unchanged, exports from the northern region experienced a seasonal decline due to winter conditions.

Northern cement mills dispatched 2.9Mt of cement, showing a decline of 3.7 per cent compared to December 2023. However, cement mills in the south saw a significant increase of 19.3 per cent in cement dispatches to 1.254Mt.

Cumulative data
In the first six months of the current fiscal year, total cement dispatches were 22.93Mt, down four per cent from 23.88Mt in the corresponding period of the last fiscal year. Domestic dispatches declined by 10.4 per cent to 18.12Mt, while export dispatches increased by 31.7 per cent to 4.81Mt.

The cement industry's performance is a key indicator of the country's economic growth, and the decline in domestic cement dispatches is a worrying trend. The government's support is crucial to boost demand and enable the sector to use its idle capacity.

by Abdul Rab Siddiqi, Pakistan