Karachi: Cement dispatches in August 2026 recorded a slight annual decline, with total volumes reaching 4.04 million tons, marking a 0.7% decrease year-over-year. This decline was primarily driven by a 1.1% drop in local dispatches, which was partially offset by a 0.9% rise in exports. On a monthly basis, sales saw a sharper decline of 9.9%, primarily due to a 13.1% reduction in local dispatches, following a high base in the previous month.

According to JS Global, the South region was a significant contributor to the year-over-year growth in cement dispatches. Local dispatches in the South increased by 6.5% due to favorable weather conditions, while exports surged by 40%, counterbalancing the lack of exports from the North region. Despite the monthly decrease, domestic volumes showed an 8% growth year-over-year in the first two months of fiscal year 2027.

Industry analysts maintain an optimistic outlook on the cement sector, citing healthy profit margins, efficient fuel utilization, and timely adjustments in market retail prices (MRP) to cover costs. However, the recent 14% spike in coal prices poses a potential challenge. Despite this, companies have effectively navigated elevated coal costs since the onset of the war, with northern players increasingly using local coal and southern players sourcing from more affordable options. JS Global's top recommendations in the sector include Maple Leaf Cement Factory Limited (MLCF) and Fauji Cement Company Limited (FCCL).