Pakistan’s cement industry held its ground in March 2026 with total dispatches rising marginally to 3.745 million tons, a 0.91% year-on-year gain from 3.712 million tons in March 2025, according to data released by the All Pakistan Cement Manufacturers Association (APCMA). Ramazan and Eid holidays suppressed local sales, but a 6.56% jump in exports kept overall volumes in positive territory despite escalating Middle East tensions.
March 2026 — Domestic Sales Slip, Exports Compensate
Local cement dispatches declined 0.20% to 3.097 million tons in March 2026 from 3.103 million tons in March 2025 — a seasonal drag largely attributed to construction activity slowing across Ramazan and the Eid al-Fitr break.
Exports posted stronger growth, rising 6.56% to 648,564 tons despite higher war risk premiums and elevated freight charges on key shipping routes.
| Metric | March 2026 | March 2025 | YoY Change |
|---|---|---|---|
| Total Dispatches | 3.745mt | 3.712mt | +0.91% |
| Local Sales | 3.097mt | 3.103mt | -0.20% |
| Exports | 648,564 tons | 608,614 tons | +6.56% |
North-based cement mills dispatched 2.639 million tons in March 2026, up 3.07% from 2.561 million tons in the same month last year, with domestic sales increasing 3.82%. Northern mills recorded zero export shipments during the month — a continuation of the border disruption pattern that has persisted through FY26.
South-based mills saw a sharper reversal — total dispatches fell 3.89% to 1.11 million tons, with domestic sales dropping 18.40% to 457,583 tons. Exports from the South rose 9.91% to 648,564 tons, carrying the sector’s entire export volume for the month.
The divergence underscores a structural split in Pakistan’s cement geography: northern mills depend almost entirely on domestic construction demand, while southern mills increasingly rely on sea-based export channels to offset softer local demand.
Total cement dispatches for the first nine months of FY2025–26 reached 38.54 million tons, up 9.8% from 35.1 million tons in the same period last year. Domestic shipments grew 10.61% to 31.6 million tons, while exports increased 6.25% to 6.94 million tons.
| 9MFY26 Indicator | 9MFY26 | 9MFY25 | YoY Change |
|---|---|---|---|
| Total Dispatches | 38.54mt | 35.1mt | +9.8% |
| Domestic Sales | 31.6mt | 28.6mt | +10.61% |
| Exports | 6.94mt | 6.53mt | +6.25% |
North-based mills led domestic expansion with a 12.14% increase to 26.384 million tons over nine months, though their exports dropped 28.54%. South-based mills posted a 3.47% rise in domestic sales and a strong 13.45% increase in exports to 6.14 million tons.
What APCMA Said
An APCMA spokesperson flagged ongoing geopolitical tensions and volatility in global fuel markets — particularly coal and oil — as major challenges for the energy-intensive cement industry, noting that Pakistan’s cement manufacturers rely heavily on imported coal and remain vulnerable to global price swings and supply disruptions, especially amid tensions affecting key shipping routes like the Strait of Hormuz.
Retail cement prices in the northern region rose 2% to Rs 1,440 per bag in March 2026 from Rs 1,415 in February 2026, driven by higher transportation and fuel costs, according to the Pakistan Bureau of Statistics.
What This Means for Cement Sector Investors
For PSX-listed cement companies — including Lucky Cement, DG Khan Cement, Maple Leaf Cement, and Cherat Cement — the March data delivers a mixed but broadly positive read ahead of Q3 FY26 results. The 9.8% nine-month volume growth confirms that the demand recovery underway since mid-FY25 remains intact, driven by improving construction activity on the back of lower interest rates following the SBP’s policy rate cuts. However, the northern export collapse and rising coal prices squeeze margins — investors should watch cost-of-production disclosures closely when quarterly results hit the PSX in the coming weeks. Capacity utilisation in March stood at an estimated 52%, leaving meaningful headroom for volume-driven earnings growth if domestic demand accelerates into Q4.