Local Cement Sales Decline in December 2024, Exports Surge by 50%

ISLAMABAD: Local cement sales in December 2024 showed a decline of 4.76% compared to the same month last year, according to data released by the All Pakistan Cement Manufacturers Association (APCMA). The local despatches for the month amounted to 3.37 million tons, down from 3.54 million tons in December 2023.

However, cement exports saw a significant increase of 49.35% in December 2024, with volumes rising to 783,550 tons compared to 524,656 tons during the same month in 2023. Overall cement despatches, including both domestic and export shipments, reached 4.154 million tons, marking a modest 2.23% increase from the 4.063 million tons despatched in December 2023.

The data revealed contrasting performance between the northern and southern regions of the country. North-based cement mills experienced a decline in domestic sales, with despatches falling by 3.71%, from 3.01 million tons in December 2023 to 2.9 million tons in December 2024. Meanwhile, exports from north-based mills rose by 50.18%, reaching 114,089 tons compared to 75,967 tons last year.

In contrast, southern cement mills showed a 19.25% increase in local despatches, from 1.05 million tons in December 2023 to 1.254 million tons in December 2024. Exports from the south also surged, up by 49.20% to 669,461 tons from 448,689 tons a year earlier.

Six-Month Performance Overview

For the first half of the fiscal year, total cement despatches (domestic and exports) decreased by 3.97%, totaling 22.933 million tons compared to 23.881 million tons in the same period of the previous year. Domestic sales dropped by 10.41%, from 20.23 million tons to 18.12 million tons, while export volumes saw a 31.69% rise, increasing from 3.653 million tons to 4.81 million tons.

In terms of regional performance, north-based mills saw a 9.46% decline in domestic despatches, totaling 15.185 million tons compared to 16.772 million tons during the first half of 2023. Exports from the north increased by 28.81%, reaching 992,413 tons, compared to 770,470 tons in the previous year.

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Southern mills faced a reduction of 15.02% in domestic despatches, down to 2.937 million tons from 3.456 million tons, but exports from the south surged by 32.47%, reaching 3.817 million tons compared to 2.882 million tons during the same period last year.

Industry Concerns and Recommendations

The APCMA spokesperson expressed concern over the ongoing decline in local cement demand, stressing the importance of local offtake for the growth of the cement industry and the broader economy. The spokesperson called on the government to reduce duties and taxes, which could lower the cost of cement, boost local sales, and help the industry utilize its idle capacity more effectively.

The cement industry’s reliance on exports has been increasing in response to the falling domestic demand, but industry leaders warn that long-term growth will depend on stimulating local market activity.