In November 2024, Pakistan’s cement industry saw a noteworthy increase in exports, which rose by 21.27% compared to the previous year. The total exported amount reached 803,258 tons, a significant jump from 662,374 tons reported in November of the prior year, highlighting a robust performance in the sector, as per the All Pakistan Cement Manufacturers Association (APCMA).
Overall Impact on Cement Dispatches
In November 2024, the cement industry in Pakistan demonstrated a notable increase in performance. Total cement dispatches reached 4.146 million tons, marking a 5.58% rise over the previous year’s figure of 3.927 million tons. This overall growth was supported by both a boost in exports and a modest uptick in domestic sales. Domestic dispatches climbed to 3.342 million tons, reflecting a 2.39% increase from the 3.264 million tons seen in November 2023. This uptick in domestic and international demand underscores the industry’s robust health during this period.
Regional Performance Variations
The north and south regions of Pakistan showed differing trends in their cement market dynamics. Northern mills reported a steady increase in total dispatches by 2.01% to 2.925 million tons. This included a significant 16.90% rise in exports amounting to 168,265 tons, while domestic sales edged up by 1.23% to 2.757 million tons. Conversely, southern mills outperformed with a 15.21% jump in total dispatches reaching 1.220 million tons. The export figures were particularly strong, showing a 22.48% surge to 634,993 tons, accompanied by an 8.24% increase in domestic sales to 585,689 tons.
Fiscal Year Trends
The robust performance in November contrasts with the broader trends over the first five months of the fiscal year. From a year-over-year perspective, total dispatches declined by 5.24%, dropping to 18.779 million tons from 19.818 million tons. This decline was particularly noted in domestic dispatches, which decreased by 11.61% to 14.752 million tons. However, the export segment showed resilience and growth, increasing by 28.73% to reach 4.027 million tons. Specific to regions, northern mills saw an 8.62% decrease in total dispatches, but exports rose by 26.47% to 878,324 tons. In contrast, southern mills recorded a 4.05% increase in total dispatches, driven largely by a 29.38% rise in exports totaling 3.148 million tons.
Industry Challenges and Opportunities
Despite these strong export numbers, an APCMA spokesperson highlighted the need for governmental support to overcome sector challenges. They pointed out that reducing duties and taxes could decrease consumer costs, spur local demand, and allow fuller utilization of the industry’s production capacities. The surge in November exports not only illustrates the global market demand but also signals potential for significant growth in Pakistan’s cement industry if domestic hurdles are effectively managed.
