After several months of declining performance, cement dispatches in Pakistan saw a MoM increase of 11.6 per cent in January 2025. However, February 2025 did not deliver the expected boost. According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement dispatches in February 2025 totalled 3.07Mt, a modest rise of 6.8 per cent compared to 2.87Mt in February 2024. In contrast, export dispatches significantly advanced by 34.3 per cent from 395,935t in February 2024 to 531,736t in February 2025. Total cement dispatches for February 2025 reached 3.596Mt, up 10.2 per cent from 3.265Mt during the same month in the previous fiscal year.

In February 2025 northern cement mills dispatched 2.56Mt of cement, an increase of 5.1 per cent from 2.43Mt in February 2024. Southern mills delivered 1.04Mt, up 25 per cent when compared to 0.83Mt in February 2024. Northern mills sent 2.51Mt to domestic markets in February 2025, marking a rise of 7.2 per cent from 2.34Mt in February 2024. Southern mills delivered 557,895t to local markets in February 2025, reflecting edging up 5.1 per cent compared to 531,044t in February 2024. Exports from northern mills experienced a dramatic decline of 47.8 per cent, dropping from 95,393t in February 2024 to 49,780t in February 2025. Conversely, exports from southern mills increased by 60.4 per cent, rising to 481,956t in February 2025 from 300,542t in the same month last year.

8MFY24-25 dispatches
During the first eight months of the current financial year (July 2024-February 2025), total cement dispatches (domestic and export) slipped 0.5 per cent YoY to 30.423Mt from 30.56Mt dispatched during the previous fiscal year. Domestic dispatches during this timeframe amounted to 24.5Mt, down from 26.06Mt in the equivalent period of the previous fiscal year, leading to a reduction of six per cent. However, export dispatches saw a 31.8 per cent advance, increasing to 5.924Mt compared to 4.495Mt exported in the 8MFY23-24.

Northern mills dispatched 20.36Mt of cement domestically in the 8MFY24-25, a decline of 5.3 per cent from 21.49Mt in the July 2023-February 2024 period. Exports from the north increased by 20.4 per cent, reaching 1.101Mt during July 2024-February 2025, compared with 0.914Mt exported in the year-ago period.

Total dispatches from northern mills decreased by 4.2 per cent, totalling 21.462Mt in the 8MFY24-25, down from 22.41Mt in the equivalent period of the previous fiscal year. Domestic dispatches from southern mills in the July 2024-February 2025 period amounted to 4.14Mt, representing a 9.4 per cent YoY decline from 4.57Mt. In contrast, exports from the south increased by 34.7 per cent, reaching 4.822Mt during July 2024-February 2025, compared to 3.58Mt exported in the 8MFY23-24. Total dispatches from southern mills rose by 10 per cent YoY to 8.96Mt from 8.15Mt in the July 2023-February 2024 period.

An APCMA spokesman said the industry hopes government measures will enhance the sector’s capacity utilisation in the upcoming budget. He added that the cement industry supports numerous allied industries and is vital for the country’s economic development.

In comments about dispatches, Usama Rauf of AKD Securities Ltd said the low base of last year, due to elections in February 2024 and a drop in cement prices, led to annual growth in local cement dispatches. This, alongside higher exports, contributed to the second consecutive month of double-digit dispatch growth. Although sequential growth is negative, the decline is nominal due to fewer working days in the month, while the average daily offtakes rose by two per cent MoM.

by Abdul Rab Siddiqi, Pakistan