According to the All Pakistan Cement Manufacturers Association (APCMA), the local industry recorded total dispatches falling to 2.961Mt from 3.338Mt in March 2024, marking an 11.3 per cent decrease. Export volumes remained stable at 608,614t. Overall, total cement dispatches for the month were 3.569Mt, down 9.5 per cent from the previous year.
Northern mills dispatched 2.45Mt, reflecting a 14.5 per cent decline, while southern mills increased their dispatches to 1.12Mt, representing a four per cent rise. Domestic dispatches in the north dropped 11.3 per cent, while south mills experienced an 11.2 per cent decrease. Exports from the north plummeted 85.2 per cent, whereas south exports grew by 22.8 per cent.
Total dispatches for the first nine months of the fiscal year were 33.99Mt, which is 1.5 per cent lower than the previous year. Domestic dispatches fell by 6.6 per cent, while exports rose by 28.1 per cent. Northern mills saw a six per cent decrease in domestic dispatches but a 7.8 per cent increase in exports. Southern mills reported a 9.6 per cent decrease in domestic dispatches, but exports surged by 33.3 per cent.
A spokesperson for APCMA emphasised cement's importance in the economy and suggested that policymakers consider reducing taxes and duties to boost domestic demand. Reviewing the data, Usama Rauf of AKD Securities Ltd said the decline in local sales was driven by a slowdown in construction activities during Ramadan and Eid holidays. While sea exports from the South remained elevated, exports from the north declined sharply due to the closure of the Afghan border for most of the month.
We expect a slight improvement in local cement sales as we advance, while exports will likely remain strong. However, the recent tariff imposition by the US may restrict exports to that region. Given the limited share of US-bound shipments in total exports, the overall impact is expected to be minimal.
by Abdul Rab Siddiqi, Pakistan
