Pakistan’s overall cement sales surge 2.23% in December

Pakistan’s overall cement sales increased 2.23% in December to 4.154 million tons against 4.063 million tons during the same month of the last fiscal year.

The All Pakistan Cement Manufacturers Association (APCMA) reported that local cement sales in December were 3.37 million tons, a 4.76% decrease from December 2023's 3.539 million tons. However, exports increased by 49.35% to 783,550 tons.

An analyst at Insight Securities said the cement industry’s profitability is volatile due to cyclical nature of cement demand, influenced by the country’s recurring economic boom & bust cycles.

To note, cement industry utilization has remained below 60% for the past 2 years, showcasing longevity of economic trough with no foreseeable catalyst to boost demand.

In the first half of the current fiscal year, total cement sales (both local and export) were 22.933 million tons, which is 3.97% less than the 23.881 million tons sold during the same period last fiscal year.

Domestic sales were 18.122 million tons, a 10.41% decrease from the 20.228 million tons sold last year. On the other hand, export sales increased by 31.69% to 4.810 million tons, compared to 3.653 million tons last year.

An APCMA spokesperson expressed concerns about the ongoing decline in local cement demand. He highlighted that local sales are crucial for both industrial and economic growth.

The spokesperson suggested that reducing government duties and taxes could lower cement prices, boost sales, and help the sector utilize its excess capacity.