Cement sales rise after staying sluggish for months

Local dispatches by cement manufacturers reached 3.313 million tons in January 2025 compared to 2.967 million tons in the same month of last year, showing an increase of 11.64%, as per data released by the All Pakistan Cement Manufacturers Association (APCMA).

In a statement, the industry lobby commented that the domestic cement sales increased after many sluggish months.

Exports rose 30.25% as volumes increased from 446,595 tons in January 2024 to 581,691 tons in January 2025. Total cement dispatches stood at 3.894 million tons against 3.414 million tons last year, registering an overall increase of 14.08%.

In January 2025, north-based mills supplied 2.728 million tons of cement, higher by 12.08% from dispatches of 2.434 million tons in January 2024. Similarly, south-based mills sold 1.166 million tons of cement, up 19.04% compared to supplies of 0.980 million tons last year.

Northern mills dispatched 2.669 million tons to domestic markets in January 2025, which was 11.89% more than sales of 2.385 million tons in January 2024. Southern mills provided 644,173 tons to local consumers, recording a rise of 10.63% compared to 582,258 tons in the previous year.

Exports from north-based mills rose 21.42% as the quantity went up from 48,883 tons in January 2024 to 59,355 tons in January 2025. Exports from the south jumped 31.34% to 522,336 tons in January 2025 from 397,712 tons in the same month of last year.

During the first seven months (Jul-Jan) of the current fiscal year, total cement dispatches (domestic and exports) were 26.827 million tons, which was 1.71% lower than sales of 27.295 million tons in the corresponding period of last year.

Domestic dispatches during the seven-month period came in at 21.435 million tons against 23.196 million tons in the same period of last year, showing a reduction of 7.59%. This decline was somewhat offset by impressive exports that surged 31.54%.

Export volumes jumped to 5.392 million tons during the first seven months of the current fiscal year compared to 4.099 million tons in the corresponding period of last year. An APCMA spokesman expressed concern over the duty and tax structure for cement that, he said, posed a major bottleneck to domestic demand.

"As cement is an essential commodity and not a luxury item, the government should rationalise its tax structure as a lower cost for end-consumers will boost construction activities and employment in the sector," he added.