Karachi: Cement dispatches in February 2026 experienced a robust increase, rising 13% year-on-year to 4.2 million tons, marking a second consecutive month of double-digit growth. The increase was primarily driven by a 38% year-on-year surge in exports, with a notable 52% rise from the southern region. Local dispatches also saw an 8% increase, reaching 3.47 million tons.
According to JS Global, the fiscal year to date has shown a total cement dispatch increase of 11% year-on-year over the first eight months, buoyed by a 12% rise in local dispatches. Export growth, however, remained modest at 6%, as a 14% increase in exports from the South was counterbalanced by a 27% decline from the North, attributed to the ongoing closure of the Afghan border.
The sector now faces challenges from a sharp rise in coal prices due to the conflict in the Middle East, with prices escalating to $109 per ton, a 22% increase within a month. This rise in coal prices threatens the margins of cement producers, particularly in the South, where companies like DG Khan Cement Company and Attock Cement Pakistan Limited rely heavily on imported coal. These companies might also experience diminished export competitiveness due to already narrow export margins.
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