Driven by exports, cement sales rise 2.5%

Industry supplies 42.8m tons in July-May FY25 against 41.7m tons last year

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LAHORE:

Domestic cement sales recorded a year-on-year drop of 1.94% to 34.4 million tons in the first 11 months of the current fiscal year as compared to sales of 35.1 million tons in the same period of last year, according to data released by the All Pakistan Cement Manufacturers Association.

Exports, however, grew 25.73%, which resulted in a marginal overall growth of 2.46% in industry sales from July 2024 to May 2025.

In May alone, cement dispatches rose 8.57% to 4.651 million tons against 4.284 million tons in the same month of last fiscal year.

Local supplies from the industry reached 3.662 million tons in May as compared to 3.362 million tons in May last year, which was higher by 8.93%. Exports jumped 7.27% as volumes increased from 0.922 million tons in May 2024 to 0.989 million tons in May 2025. North-based mills sold 3.261 million tons, up 11.87% against sales of 2.915 million tons last year, while southern mills supplied 1.39 million tons, higher by 1.54% from dispatches of 1.379 million tons.

Cement mills in the northern region dispatched 3.02 million tons to domestic markets, registering an increase of 9.71% against 2.753 million tons in May last year. Sales of southern mills in local markets rose 5.37% to 641,894 tons compared to 609,174 tons last year. Exports from northern mills went up 48.27% as shipments increased from 162,929 tons in May 2024 to 241,578 tons in May 2025. Exports from the south edged down 1.53% to 747,856 tons against 759,456 tons in the previous year.

During the first 11 months of the current fiscal year, total cement dispatches (domestic and exports) were 42.764 million tons, which were 2.46% more than 41.739 million tons during the corresponding period of last year.

Domestic dispatches stood at 34.419 million tons against 35.102 million tons last year, showing a reduction of 1.94%. Exports, on the other hand, showed a healthy increase of 25.73% as volumes reached 8.345 million tons as compared to 6.637 million tons in the previous year.

A spokesman for the cement manufacturers association emphasised that the 1.94% negative growth in domestic sales in July-May FY25 needs to be examined seriously.

"Domestic demand plays a key role in utilising the idle capacity of the cement sector as well as in the overall economic development of the country. The cement industry attracts many allied industries like steel, paints, electrical items, etc and an increase in construction activities lifts the economy as a whole," he said. The spokesman was optimistic that the government would consider the industry's plea in the upcoming budget and would announce a reduction in duties and taxes in order to make cement affordable for the masses.