Monsoon rains have dampened construction activities in Pakistan; therefore, cement offtakes have declined by 26% so far this year compared to the same period last year.
Cement dispatches for August 2024 clocked in at 3.37 million tons, a decline of 26% compared to the corresponding period of the previous year of 2023, largely attributed to a slowdown in construction activity, exacerbated by heavy monsoon rains, according to AKD Research.
Average cement prices in the North have risen by Rs 43 per bag in the previous month, following the increase in royalty rates by the Punjab government, to hover around Rs 1,530 per bag.
The brokerage house forecasted that local cement demand to dampen further by 2% to 2.5% this fiscal year compared to last fiscal year. Meanwhile, exports of cement are expected to outperform the previous year, subsequently, total cement offtakes are anticipated to remain flat on an annual basis.
