{"id":10895,"date":"2025-08-05T10:52:53","date_gmt":"2025-08-05T05:52:53","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10895"},"modified":"2025-08-05T10:52:56","modified_gmt":"2025-08-05T05:52:56","slug":"cement-demand-picks-up-in-july-2025-signs-of-construction-revival-in-pakistan","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/cement-demand-picks-up-in-july-2025-signs-of-construction-revival-in-pakistan\/","title":{"rendered":"Cement Demand Picks Up in July 2025: Signs of Construction Revival in Pakistan"},"content":{"rendered":"\n

After a slow patch in June, Pakistan\u2019s cement industry bounced back strong in July 2025. Cement dispatches, a key sign of construction activity, were up 16% month-on-month<\/strong>, reaching 4 million tons<\/strong>. This jump is good news for the economy, especially at a time when Pakistan is trying to get back on a stable growth path.<\/p>\n\n\n\n

Let\u2019s break down what happened and what it could mean for the future.<\/p>\n\n\n\n

Why the sudden rise in cement demand?<\/h2>\n\n\n\n

Despite challenges like rainfall and transport delays (especially in the North), the rise in cement sales was fueled by a few important factors:<\/p>\n\n\n\n

    \n
  • Construction is picking up after the Eid holidays<\/strong><\/li>\n\n\n\n
  • Hopes that the new budget will support real estate and housing<\/strong><\/li>\n\n\n\n
  • Export demand is rising sharply<\/strong>, especially from neighboring countries<\/li>\n<\/ul>\n\n\n\n

    Dispatches breakdown: domestic vs exports<\/h2>\n\n\n\n

    North Pakistan<\/strong><\/h4>\n\n\n\n
      \n
    • Domestic sales: Up 8% from June<\/strong>, 12% from last year<\/strong><\/li>\n\n\n\n
    • Export sales: Up 11% from June<\/strong>, and more than double<\/strong> from last year<\/li>\n<\/ul>\n\n\n\n

      South Pakistan<\/strong><\/h4>\n\n\n\n
        \n
      • Domestic sales: Shot up 58% from June<\/strong>, and 54% from last year<\/strong><\/li>\n\n\n\n
      • Export sales: Up 19% MoM<\/strong>, 73% YoY<\/strong> (reached 0.78 million tons<\/strong>)<\/li>\n<\/ul>\n\n\n\n

        The South region<\/strong> saw stronger growth, mainly due to better weather and strong export orders<\/strong>.<\/p>\n\n\n\n

        Cement prices and coal cost<\/h2>\n\n\n\n

        Cement prices showed mixed trends:<\/p>\n\n\n\n

          \n
        • In the North<\/strong>, the average price per bag fell to PKR 1,390<\/strong> (down 7% from last year)<\/li>\n\n\n\n
        • In the South<\/strong>, prices increased to PKR 1,446<\/strong> (up 5% YoY)<\/li>\n<\/ul>\n\n\n\n

          Coal, which is a key input cost for cement, became cheaper<\/strong>:<\/p>\n\n\n\n

            \n
          • International coal price dropped to $93.6\/ton<\/strong>, down 17% YoY<\/strong><\/li>\n\n\n\n
          • In local terms, coal is now around PKR 34,000\/ton<\/strong><\/li>\n<\/ul>\n\n\n\n

            This fall in coal prices could help cement companies improve their profit margins going forward.<\/p>\n\n\n\n

            What\u2019s the outlook?<\/h2>\n\n\n\n

            The government\u2019s new budget for FY26 is focused on reviving construction and affordable housing<\/strong>. Key measures include:<\/p>\n\n\n\n

              \n
            • PKR 10 billion allocated for housing subsidies and loan mark-up support<\/strong><\/li>\n\n\n\n
            • Tax credit on loans for houses up to 250 sq. ft or flats under 2,000 sq. ft.<\/strong><\/li>\n<\/ul>\n\n\n\n

              These steps are expected to boost domestic demand<\/strong> for cement in the coming months.<\/p>\n\n\n\n

              On the export front, companies with a strong global footprint are also expected to benefit as regional demand rises.<\/p>\n\n\n\n

              Top cement companies to watch:<\/strong>
              \u2705 Lucky Cement (LUCK)<\/strong>
              \u2705 DG Khan Cement (DGKC)<\/strong>
              \u2705 Fauji Cement (FCCL)<\/strong><\/p>\n\n\n\n

              Other notable industry moves<\/h2>\n\n\n\n
                \n
              • Lucky Cement<\/strong>, along with partners, has shown interest in acquiring a major stake (51\u2013100%) in Pakistan International Airlines (PIA)<\/strong> as part of the government\u2019s privatization push.<\/li>\n\n\n\n
              • Kohat Cement (KOHC)<\/strong> is setting up a real estate subsidiary<\/strong> and plans a stock split<\/strong> (5 shares for every 1 share).<\/li>\n\n\n\n
              • Cherat Cement (CHCC)<\/strong> and Shirazi Investments<\/strong> want to buy a 75.7% stake in Rafhan Maize<\/strong>, showing their interest in diversifying beyond cement.<\/li>\n<\/ul>\n\n\n\n

                Summary of July 2025 cement dispatches<\/h2>\n\n\n\n
                Region<\/th>Jul ’25<\/th>Jun ’25<\/th>MoM %<\/th>Jul ’24<\/th>YoY %<\/th><\/tr><\/thead>
                North (Total)<\/strong><\/td>2.65 Mn Tons<\/td>2.44<\/td>+8%<\/td>2.25<\/td>+18%<\/td><\/tr>
                \u2022 Domestic<\/td>2.42<\/td>2.24<\/td>+8%<\/td>2.15<\/td>+12%<\/td><\/tr>
                \u2022 Exports<\/td>0.23<\/td>0.21<\/td>+11%<\/td>0.10<\/td>1.3x<\/td><\/tr>
                South (Total)<\/strong><\/td>1.35<\/td>1.01<\/td>+33%<\/td>0.82<\/td>+65%<\/td><\/tr>
                \u2022 Domestic<\/td>0.57<\/td>0.36<\/td>+58%<\/td>0.37<\/td>+54%<\/td><\/tr>
                \u2022 Exports<\/td>0.78<\/td>0.65<\/td>+19%<\/td>0.45<\/td>+73%<\/td><\/tr>
                Total<\/strong><\/td>4.00<\/td>3.46<\/td>+16%<\/td>3.07<\/td>+30%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

                July 2025 marks a strong comeback for Pakistan\u2019s cement sector, hinting at a wider recovery in construction and real estate. With favorable government policies, falling coal prices, and strong export demand, the industry could be heading for a solid FY26.<\/p>\n\n\n\n

                For long-term investors, this sector might be worth a closer look.<\/p>\n\n\n\n

                Source: Taurus Securities <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                After a slow patch in June, Pakistan\u2019s cement industry bounced back strong in July 2025. Cement dispatches, a key sign of construction activity, were up 16% month-on-month, reaching 4 million tons. This jump is good news for the economy, especially at a time when Pakistan is trying to get back on a stable growth path.<\/p>\n","protected":false},"author":9252,"featured_media":9495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[153],"tags":[274,199,186,41,45,10],"class_list":["post-10895","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-cement-sector","tag-chcc","tag-dgkc","tag-fccl","tag-kohc","tag-luck"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/06\/Top-X-Stocks15-1140x445.jpg",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/06\/Top-X-Stocks15-463x348.jpg",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/06\/Top-X-Stocks15-300x188.jpg",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2025\/06\/Top-X-Stocks15.jpg",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10895"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10895\/revisions"}],"predecessor-version":[{"id":10896,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10895\/revisions\/10896"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/9495"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}