Islamabad, Jan 7: The retail price of cement in Pakistan has been reduced by up to Rs. 20 per bag, reflecting weaker demand during the winter season. According to JS Global, cement manufacturers in the North region have implemented the price cut, bringing the maximum retail price (MRP) in the region to approximately Rs. 1,350 per bag. This reduction follows several weeks of softening cement prices as a response to seasonal demand decline.
Cement Prices in Pakistan
Currently, cement prices in Pakistan range between Rs. 1,380 and Rs. 1,420 for a 50 kg bag, depending on the brand. Despite the short-term price drop, the cement industry is projected to grow steadily over the next four years, with an expected compound annual growth rate (CAGR) of 3.6% during 2024-2028. This growth is attributed to anticipated infrastructure development and recovery in construction activities.
However, the industry also faces significant challenges. Local cement dispatches for September 2024 are forecasted to decline by 22% year-on-year, falling to approximately 2.79 million tons (Mt). The drop is largely due to the slowdown in construction activities, influenced by escalating costs of construction materials. This has discouraged builders and developers, further straining the industry.
The combination of rising production costs, reduced demand, and declining local dispatches has raised concerns for stakeholders. Industry experts highlight that the cement sector must address these challenges to sustain its growth trajectory. Policymakers and industry leaders are urged to explore solutions, such as reducing production costs and improving logistics, to maintain affordability for consumers and support the construction sector.
While the current decline reflects short-term market adjustments, the long-term outlook for the cement industry in Pakistan remains positive. The anticipated recovery in demand and infrastructure projects may help stabilize the sector in the coming years.
The recent price adjustment offers some relief to consumers, but challenges like rising material costs and fluctuating demand remain critical concerns for Pakistan’s cement industry.
