Cement exports surge over 50pc in October as local demand stagnates

LAHORE: While domestic cement demand remained stagnant, exports surged in October 2024, with the industry reporting total dispatches of 4.357 million tonnes compared to 4.006 million tonnes in the same month last fiscal year, marking an 8.74 per cent increase.

Cement exports rose by over 50 per cent in October 2024, offsetting the sluggish demand in the local market due to slowdowns in private sector construction. According to data from the All Pakistan Cement Manufacturers Association, local dispatches by the industry in October 2024 were 3.276 million tonnes, a slight decrease of 0.49 per cent from 3.292 million tonnes in October 2023. Export dispatches, however, rose by 51.29 per cent, with volumes climbing from 714,325 tonnes in October 2023 to 1,080,691 tonnes in October 2024.

In October 2024, cement dispatches from north-based mills reached 2.982 million tons, an increase of 2.76 per cent compared to 2.902 million tonnes in October 2023. South-based mills dispatched 1.374 million tonnes, up 24.46 per cent from 1.104 million tonnes in October 2023.Domestic dispatches from north-based mills in October 2024 remained nearly flat, totalling 2.779 million tonnes compared to 2.78 million tonnes in October 2023. South-based mills dispatched 496,626 tonnes locally in October 2024, reflecting a 3.06 per cent decrease from 512,320 tonnes in October 2023.

Exports from north-based mills rose by 65.83 per cent, with volumes increasing from 122,326 tonnes in October 2023 to 202,858 tonnes in October 2024. Similarly, exports from south-based mills increased by 48.28 per cent, reaching 877,833 tonnes in October 2024, up from 591,999 tonnes during the same month last year.

In the first four months of the current fiscal year, total cement dispatches (domestic and export) reached 14.633 million tonnes, down 7.92 per cent from 15.891 million tonnes in the corresponding period of the last fiscal year. Domestic dispatches in this period totalled 11.41 million tons, a 15.02 per cent decrease from 13.426 million tonnes during the same period last year. Conversely, exports rose by 30.74 per cent, with volumes reaching 3.223 million tonnes in the first four months of the current fiscal year, compared to 2.466 million tonnes in the same period of the previous fiscal year.

North-based mills dispatched 9.643 million tonnes domestically in the first four months of the current fiscal year, a reduction of 13.23 per cent from 11.113 million tonnes in July-October 2023. Exports from north increased by 28.95 per cent to 709,959 tons during July-October 2024, up from 550,561 tonnes in the same period last year. Total dispatches by north-based mills fell by 11.24 per cent to 10.353 million tonnes in the first four months of the current fiscal year from 11.664 million tons in the same period of the last fiscal year.

Domestic dispatches from south-based mills in July-October 2024 were 1.767 million tonnes, a decrease of 23.59 per cent from 2.312 million tonnes in the same period of the previous fiscal year. Exports from South rose by 31.25 per cent to 2.513 million tonnes during July-October 2024, up from 1.915 million tonnes in the same period last year. Total dispatches from south-based mills increased by 1.25 per cent to 4.28 million tonnes in the first four months of the current fiscal year, compared to 4.227 million tonnes in the same period last year.