According to provisional data, Pakistan’s cement industry is expected to witness a 3% month-over-month (MoM) decline in local dispatches in November 2024. The sector will likely dispatch around 3.19 million tons of cement domestically, down 2% year-over-year (YoY). This was disclosed in the report of Topline Pakistan Research today.

The decline in local cement dispatches is attributed to the seasonal winter impact in the North region and political party protests in the last week of November. However, government-led construction activities in the South region are expected to drive a 7% MoM increase in sales.

On a YoY basis, the decline in local cement dispatches is due to a slowdown in construction activities caused by higher input costs and a 17% and 18% increase in cement bag prices in the North and South regions, respectively.

Exports are expected to decrease by 22% MoM but increase by 28% YoY in November 2024. The total cement sales in Pakistan will likely reach around 4.04 million tons, up 3% YoY and down 7% MoM.

The cement industry’s capacity utilization is estimated to be around 59% in November 2024, compared to 57% in October 2024 and 64% in November 2023.

In the first five months of the fiscal year 2025, total cement sales will likely decline by around 6% YoY, with local sales expected to decrease by 13% YoY and exports to increase by 30% YoY.