Cement sales increased by 16% to 4.7 million tons in January

February 9, 2021

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Pakistan cement dispatches maintained growth trajectory as they increased by 15.9% YoY to 4.7 million tons in January-2021. Higher demand for cement was driven by extension in Amnesty scheme for the construction industry and Governments own Housing Projects.

However, exports declined by 14.7% in January-2021 due to limited space at ports. The dispatch volumes for North region increased by 23% YoY to 3.5mn ton whereas south region dispatches declined by 2.0% YoY to 1.2mn ton during January-2021.

Increase in cement dispatches to is driven by higher demand from private sector due to lower interest rate, Concessionary House finance being offered by Banks under Naya Pakistan Housing Program and extension in construction package announced by the Government.

In January 2021, local market prices of cement in northern regions increased by ~13.5%to PKR 585/bag. However, in southern region prices remained stable at PKR 634/bag during the month. Cement prices are expected to increase in coming months as a spike in electricity tariff and closure of gas to Captive Power Plants will lead to increased cost for Cement Manufacturers.