Cement recovery remains uneven

Business Recorder reported that Pakistan's cement sector closed the first quarter of FY27 on an upbeat note, as home demand picked up even though exports stayed soft. Total dispatches climbed 6 percent from a year earlier to 4.62 million tons in Sep-26. For the quarter, dispatches totalled 13.14 million tons, a 3.9 percent rise, with exports down 11.4 percent at 2.30 million tons.

Domestic sales were the main driver, up 7.4 percent from a year earlier to 3.79 million tons in Sep-26. The report links part of the gain to construction resuming after monsoon disruptions, but says it is premature to judge whether the upturn will last. Northern dispatches fell 2.4 percent year-on-year in Sep-26, as the Afghan border closure left the region with no exports, even though domestic sales rose 4.7 percent. Southern dispatches rose about 30 percent year-on-year, helped by exports up 36.3 percent to 0.83 million tons, their highest since Jan-26.

Capacity use hit roughly 66 percent in Sep-26, yet the industry still has considerable spare capacity, especially in the North at around 57 percent. Prices are still elevated, with the average at Rs1,549 per bag in Sep-26, up about 10 percent year-on-year. The report sees the FY27 domestic outlook as somewhat better, though high borrowing costs and weak private investment could slow the recovery.