Cement Sales Post Sharp 21% Decline Due to Weak Demand in May
Pakistan’s cement dispatches fell 21.02% in May as both domestic sales and exports weakened. Year-to-date, however, the industry still shows 6.44% growth.
Intelligence analysis by GPT-5.4 Mini
Pakistan’s cement sector had a weak May 2026, with total dispatches dropping to 3.84 million tons on lower local sales and a steep export fall. Even so, eleven-month FY26 dispatches remain ahead of last year, and APCMA is looking to the budget for support.
Pakistan’s cement business had a bad May, like a shop that sold fewer bags of flour because fewer people came in. But for the whole year, it is still doing better than last year.
Analysis
May slowdown
Pakistan’s cement industry saw a sharp setback in May 2026. According to data from the All Pakistan Cement Manufacturers Association (APCMA), total dispatches fell 21.02% year-on-year to 3.84 million tons. The decline came from both sides of the market: local sales dropped 17.17% to 3.21 million tons, while exports fell much harder, down 36.06% to 632,648 tons.
Regional picture
North-based manufacturers dispatched 2.66 million tons in the month, a 22% fall from the previous year. South-based mills also recorded weaker volumes, with dispatches down 18.7% to 1.18 million tons. Domestic sales in the North were down 16.05%, while southern local dispatches fell 22.21%. Export activity remained concentrated in the South; no exports were reported from North-based mills in May.
Eleven-month trend still positive
Despite the weak monthly result, the broader fiscal-year picture is still positive. From July 2025 to May 2026, total cement dispatches rose 6.44% to 46.26 million tons. Domestic demand was the main driver, with local dispatches up 8.26% to 38.01 million tons. Exports were slightly weaker over the period, falling 1.21% to 8.24 million tons.
North-based manufacturers posted 6.8% growth over the eleven months, helped by a 9.49% rise in domestic sales, even though exports from the region fell nearly 46%. Southern producers grew 5.6% overall, supported by an 8.41% rise in exports.
Outlook from the industry
APCMA said it hopes the upcoming federal budget will bring measures that support local manufacturing and ease operational bottlenecks. The association also welcomed efforts to promote regional stability and lower tensions in the Middle East.
Key points
- Total cement dispatches fell 21.02% year-on-year in May 2026 to 3.84 million tons.
- Local sales dropped 17.17%, while exports fell 36.06% compared with May last year.
- North-based dispatches declined 22% and South-based dispatches fell 18.7%.
- For July 2025 to May 2026, total dispatches still rose 6.44% year-on-year.
- APCMA is hoping the federal budget will support manufacturing and reduce bottlenecks.
If the upcoming federal budget brings supportive measures, local manufacturing could get a lift and some of the industry’s bottlenecks may ease. The year-to-date numbers also show that domestic demand is still strong enough to keep overall dispatches ahead of last year.
If weak demand continues, monthly drops like May could drag on the sector, especially if exports stay soft. North-based exporters are already under pressure, and a further fall in local activity would make the industry’s recovery more fragile.
