Cement sector ends FY25 with decline in domestic sales

LAHORE: Domestic cement demand remained sluggish during the fiscal year 2024-25, with local sales falling by 3.05 per cent to 37.017 million tonnes, compared to 38.181 million tonnes in the previous fiscal year 2024.

According to data released by the All Pakistan Cement Manufacturers Association (APCMA), exports grew significantly by 29.46 per cent, reaching 9.204 million tonnes in FY25 compared to 7.11 million tonnes in FY24. Overall, the cement industry posted a marginal growth of 2.05 per cent year-on-year, with total despatches standing at 46.221 million tonnes versus 45.291 million tonnes last year.

In June 2025 alone, local despatches dropped by 15.65 per cent to 2.597 million tonnes from 3.079 million tonnes in June 2024. However, export despatches surged by 81.7 percent, rising from 472,865 tonnes in June 2024 to 859,204 tonnes in June 2025. Total cement despatches for the month were 3.457 million tonnes, showing a 2.69 per cent decline compared to 3.552 million tonnes in June 2024.

North-based cement mills despatched 2.445 million tonnes in June 2025, down 10.21 per cent from 2.723 million tonnes a year earlier. South-based mills, by contrast, recorded a 21.99 per cent increase in despatches, totalling 1.01 million tonnes compared to 0.83 million tonnes in June 2024.

In domestic markets, North-based mills despatched 2.237 million tonnes in June 2025, marking a 14.43 per cent decline compared to 2.614 million tonnes in June 2024. South-based mills recorded local despatches of 360,814 tonnes, down 22.5 per cent from 465,578 tonnes the previous year.

Exports from North-based mills rose sharply by 91.05 per cent to 207,975tonnes in June 2025, compared to 108,861 tonnes in June 2024. South-based exports also posted a robust increase of 78.91 per cent, reaching 651,229 tonnes compared to 364,004 tonnes a year earlier.

During FY25, North-based mills recorded domestic despatches of 30.726 million tonnes, a 2.60 percent decline from 31.545 million tonnes in FY24. Exports from the North grew by 15.56 percent, reaching 1.684 million tonnes versus 1.457 million tonnes in the previous year. Overall despatches from North-based mills declined by 1.79 percent to 32.410 million tonnes from 33.002 million tonnes.

South-based mills recorded domestic despatches of 6.291 million tonnes in FY25, down 5.21 percent from 6.636 million tonnes in the previous year. Exports from the South rose by 33.04 percent to 7.519 million tonnes compared to 5.652 million tonnes in FY24. Total despatches from South-based mills rose by 12.38 percent to 13.811 million tonnes from 12.289 million tonnes last year.

A spokesman for the APCMA said that falling domestic demand remains a key obstacle to industry growth. He urged the government to reduce duties and taxes, stressing that cement is a basic necessity, not a luxury. “We must find ways to increase domestic off-take to utilise idle capacity, which will stimulate economic growth, create employment and boost revenue for allied industries,” he added.