Cement sales in Pakistan drop in December 2024

LAHORE: Local cement dispatches recorded a 4.76% decline in December 2024, standing at 3.37 million tons compared to 3.539 million tons during the same month of the last fiscal year. However, cement exports surged by 49.35%, rising to 783,550 tons from 524,656 tons in the same month last year.

According to the All Pakistan Cement Manufacturers Association (APCMA), total cement dispatches in December 2024 amounted to 4.154 million tons, reflecting a 2.23% increase from 4.063 million tons in December 2023.

Northern mills dispatched 2.9 million tons of cement in December 2024, a decline of 3.71% compared to 3.012 million tons in December 2023. Meanwhile, southern mills dispatched 1.254 million tons, marking a 19.25% rise from 1.052 million tons in the previous year.

Domestically, northern mills recorded a 5.11% drop, dispatching 2.786 million tons in December 2024 compared to 2.936 million tons in December 2023. Southern mills also reported a 3.04% reduction in domestic dispatches, with 584,684 tons compared to 603,010 tons last year.

In the export market, northern mills saw a 50.18% increase, dispatching 114,089 tons compared to 75,967 tons in December 2023. Similarly, southern mills exported 669,461 tons, reflecting a 49.2% rise from 448,689 tons last year.

In the first half of FY2024-25, total cement dispatches dropped by 3.97% to 22.933 million tons from 23.881 million tons in the corresponding period last year. Domestic dispatches fell by 10.41% to 18.122 million tons from 20.228 million tons, while exports grew by 31.69%, reaching 4.810 million tons compared to 3.653 million tons last year.

Northern mills experienced a 7.78% decline in total dispatches during July-December 2024, recording 16.177 million tons against 17.542 million tons in the same period of FY2023-24. Meanwhile, southern mills saw a 6.57% rise in total dispatches, reaching 6.755 million tons from 6.339 million tons during the same period.

Expressing concern over declining local cement demand, an APCMA spokesperson urged the government to reduce duties and taxes to lower costs, potentially boosting sales and improving industry capacity utilization.