KARACHI: The cement industry made a strong start to the fiscal year 2025-26, reporting a remarkable 18.40 per cent increase in local despatches and an impressive 84pc jump in exports for July.

According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement sales reached 2.988 million tonnes in July, up from 2.524 million tonnes in the same month last year. Exports also saw a substantial increase, rising to 1.008 million tonnes from 0.547 million tonnes.

As a result, total cement despatches — combining local and export sales — increased by 30.13pc to 3.997 million tonnes in July, compared to 3.071 million tonnes in the same month of 2024.

An APCMA spokesperson noted that the fiscal year began on a positive note despite challenging weather conditions in various parts of the country. He expressed optimism for continued growth in the coming months, bolstered by improving macroeconomic indicators.

Rabia Yousuf, an analyst at Topline Securities, reported that total cement capacity utilisation in July was estimated at 54pc, up from 51pc in June and 43pc in July 2024. She added that average retail prices in July declined by 2pc month-on-month (MoM) in the North and by 1pc in the South. On a year-on-year (YoY) basis, cement prices fell by 9pc in the North but rose by 4pc in the South.

She forecast a 5-6pc YoY growth in local despatches, driven by an improvement in economic activity and monetary easing.

Fahad Husain Khan of BMA Capital attributed the sales surge in July to advanced purchases by buyers in anticipation of an increase in the federal excise duty (FED). He explained that the MoM jump in July was also influenced by lower sales in June due to the Eidul Azha holidays.

Looking ahead, he expected local cement demand to recover in FY26, supported by a more favourable fiscal environment, easing inflationary pressures, and lower interest rates. He also noted that growth in exports would continue to contribute to the overall increase in cement despatches.

He further predicted that coal prices would remain around $100 per tonne, reflecting reduced global demand driven by environmental concerns.

Published in Dawn, August 3rd, 2025