Floods Hit North Cement Sales: Cherat, Kohat Stocks in Focus

Pakistan's cement dispatches fell 0.70% in August 2026 to 4.039 million tonnes from 4.068 million tonnes a year earlier, according to data released by the All Pakistan Cement Manufacturers Association. The national number hides a sharp regional split: North-based mills saw volumes drop sharply as floods disrupted construction activity, while South-based mills posted strong growth on the back of surging exports.

What August's Cement Dispatch Data Changed

North-region mills, which include Cherat Cement and Kohat Cement, dispatched 2.691 million tonnes in August, down 9.43% from 2.972 million tonnes in the same month last year. Domestic dispatches from the North fell 2.59% to 2.691 million tonnes, and there were no exports at all from North-based mills during the month. South-based mills moved in the opposite direction, dispatching 1.35 million tonnes, up 22.97% year on year, with local sales up 6.53% and exports jumping 39.83% to 756,553 tonnes.

Why Cherat Cement and Kohat Cement Stocks Are in Focus

Cement demand tracks construction activity closely: when building sites slow down, bag sales fall almost immediately because cement cannot be stockpiled by buyers for long. Floods disrupting the North during August directly cut into the construction work that drives dispatches for mills based there. Cherat Cement and Kohat Cement are both described in company profiles as North-region producers, so a regional demand shock of this kind reaches them more directly than it does mills with a national or export-oriented sales mix. The scale of the North decline, down nearly a tenth year on year, is large enough to show up in a single month's dispatch figures, even if it does not change the longer-run demand outlook for the sector.

Which Stocks, and Why

Cherat Cement (CHCC) and Kohat Cement (KOHC) are the North-region cement makers whose home market took the direct hit from weaker local dispatches in August. Both companies' earnings depend on cement sold into the northern domestic market, so a regional dispatch decline of this size is a real, if likely temporary, drag on the volumes behind one month's revenue. South-based producers benefited from the same flood disruption reshaping trade flows, since exports and local South sales both grew strongly, but no South-focused cement maker is identifiable enough from company profiles to map with confidence here.

What to Watch

The key thing to watch is whether APCMA's September dispatch data shows North volumes recovering once flood-affected areas resume construction, or whether the weakness persists into the next reporting month. A sustained, multi-month decline in North dispatches would matter more for Cherat Cement and Kohat Cement than a single flood-affected month, so the trend over the coming quarter is more informative than this one data point on its own.