Karachi: Cement dispatches in May 2025 reached their highest level in nearly two years, driven by an upswing in construction activity. According to a report from AKD Securities Limited, a total of 4.65 million tons of cement were dispatched, marking a 9% increase compared to the same period last year.

The growth was primarily fueled by a 9% rise in local offtakes, while exports also saw a 7% increase year-over-year. This surge in demand led to industry-wide capacity utilization climbing to 66%, the highest since August 2023.

The report from AKD Securities maintains a positive outlook for the cement sector. The anticipated expansion in gross margins is attributed to improvements in retention prices and a decline in power costs, coupled with decreasing interest costs.

Among the companies highlighted in the report, Lucky Cement (LUCK) and Fauji Cement Company Limited (FCCL) were noted as preferred picks, with target prices set at PkR393 and PkR61 per share by December 2025.

The resurgence in cement dispatches indicates a strengthening in the construction sector, reflecting broader economic trends and infrastructure investments.