Cement demand increases 7.2%

Industry expects further growth following resolution of regional conflict

LAHORE:

Cement demand showed a growth of 7.21% during the fiscal year ended June 30, 2026 as 50.515 million tons were supplied to domestic and export markets compared to 47.116 million tons in the previous year.

According to data released by the All Pakistan Cement Manufacturers Association, local sales increased from 37.906 million tons in 2024-25 to 41.507 million tons in FY26, exhibiting a growth of 9.5%. On the export side, the cement industry faced a slight decline of 2.19% as volumes dropped to 9.008 million tons in 2025-26 versus 9.210 million tons last year.

In June 2026 alone, total cement dispatches hit 4.331 million tons against 3.658 million tons during the same month of last fiscal year, showing an increase of 18.38%. Of these, local sales were 3.541 million tons compared to 2.793 million tons in June 2025, higher by 26.78%. On the contrary, exports dipped 8.73% as supplies shrank from 865,387 tons in June 2025 to 789,840 tons in June 2026.

North-based cement mills supplied 3.019 million tons, registering an increase of 16.39% against 2.594 million tons in June 2025. Southern mills sold 1.31 million tons during June 2026, which was 23.23% higher than dispatches of 1.065 million tons in June 2025.

During the fiscal year ended June 30, 2026, the northern mills dispatched 34.720 million tons to the domestic market, higher by 10.83% from dispatches of 31.329 million tons in the previous year.

Exports from the north declined 53.85% to 777,207 tons during the just-ended fiscal year compared with exports of 1.683 million tons last year. Total dispatches from northern mills rose 7.53% to 35.498 million tons from 33.013 million tons in the last fiscal year.

Domestic sales by southern mills reached 6.787 million tons during FY26, up 3.18% over 6.577 million tons in the previous year. Exports from the south rose 9.36% to 8.230 million tons compared with 7.526 million tons last year. Total supplies from southern mills increased 6.48% to 15.017 million tons from 14.104 million tons in FY25.

A spokesman for the cement manufacturers' association expressed optimism that there would be good demand for cement in the coming months in both domestic and international markets. He stated that collective efforts from all stakeholders to resolve the geopolitical conflict would result in competitive and stable energy supplies and would address concerns about high energy and fuel costs.