Cement Prices in Northern Region Rise Sharply

Cement prices in Pakistan's Northern region have surged by Rs. 25 to Rs. 30 per bag due to elevated coal and diesel prices, according to Topline Research. Demand for cement is improving, and local shipments are projected to grow by 2% year-over-year to 3.62 million tons in September 2026, based on the first 20 days of data. Dispatches in the North are anticipated to rise 10% month-over-month in September, with sales in the North increasing by 11% and those in the South by 8%.

The price hike is a response to weaker sales in August caused by the monsoon season. Dispatches in the South are expected to climb 26% year-over-year, primarily due to a low base in September 2025 when floods hampered sales. Average daily domestic sales in the North reached approximately 110,000 tons in the third week of September, up from 102,000 to 105,000 tons per day in the first two weeks.

Sales in the South remained between 21,000 to 23,000 tons per day. Cement exports are projected to increase by 6% year-over-year and 17% month-over-month to 0.88 million tons in September. Total cement shipments are anticipated to reach 4.5 million tons, a 3% increase year-over-year and an 11% rise month-over-month. For the first quarter of fiscal year 2027, total cement shipments are expected to hit 13.02 million tons, a 3% year-over-year growth, while local shipments are projected to rise by 6% to 10.67 million tons.

Cement capacity utilization is forecasted to hit 51% in September, compared to 50% a year ago and 47% in August. Average retail cement prices climbed 10% year-over-year to Rs. 1,550 per bag in September, up from Rs. 1,408 a year earlier, according to weekly Sensitive Price Indicator data from the Pakistan Bureau of Statistics. Prices remained relatively stable month-over-month. Topline Research anticipates domestic cement demand to grow by 8% in fiscal year 2027.