Cement Demand

Cost pressures a concern, though, as crude, currency volatility remain

The Centre and southern states were expected to retain their thrust in giving a push to housing and infrastructure projects leading to cement demand to remain on track, The India Cements Ltd Vice-Chairman and Managing Director N Srinivasan said on Thursday. Increased house building and construction activity in metros, semi-urban and urban centres would boost cement demand although cost pressure is expected to remain with higher cost of fuel, power tariff, he said. "As in the last two years, the good rainfall reported this year from South -West monsoon season augurs well for improved prospects of rural economy," he told the shareholders at the 76th annual general body meeting held through virtual mode. During 2021-22, he said a revival was witnessed in the construction sector which led to the cement demand picking up and it sustained due to increased infrastructure spending by the Centre and States. The industry suffered from steep increase in the cost of production due to ...

Fitch Ratings forecast strong medium-term growth to support the demand for India's steel, cement and chemicals sectors, with improved economic activity boosting power and petroleum product sales

Cement prices are expected to rise during H2FY22, as cost inflation firms up unabatedly, said a report by HDFC Securities

The June volumes would have come despite rains affecting construction in some parts of the country, causing 35-40 per cent YoY growth in Q1FY22 on a low base

JK Cement Ltd, part of J.K. Organisation, targets up to 10% growth in its revenue this fiscal, helped by the government's push for infrastructure, pent-up demand said top company official.

Analysts note that cement manufacturers may have to hike prices further to ensure sustainability of margins amid rising cost pressures.

Cement demand is expected to increase by up to 20 per cent in the next fiscal year with volume touching FY19-FY20 levels, rating agency ICRA said

Prices in Maharashtra are up by around 10 per cent at Rs 354 a bag, supported by higher prices in the South, which is a key supplier

With an aim to up its market share and enhance capacity, Parth Jindal, managing director of JSW Cement, has strong plans for the cement business

Rural demand will continue to outperform urban demand and companies having higher individual home builder exposure will remain better placed

Shree Cement, trading at highest valuations, is most vulnerable with demand under pressure and costs rising

Birla informed shareholders that cement demand for most of FY2020 was sluggish, with improvement expected December onwards

Improvement in per tonne profitability, despite sharp fall in volumes due to lockdown, may lead to earnings upgrade

While rural housing and infrastructure projects in remote areas would support cement consumption, urban-led demand is headed for a slowdown

Firm realisation and lower costs bode well for profitability

While a slowing economy had led to deceleration in demand, the lockdown has increased the pain, besides resulting in labour shortages and delay in project execution

Experts say that the cement demand during the first quarter of the financial year is typically led by housing (60-65 per cent), followed by infrastructure segment (20-25 per cent).

For the cement sector, recovery would be prolonged by the depressed real estate sector, muted spends on Pradhan Mantri Awas Yojana (Urban) and lower Capex (capital expenditure) by the government

In the recent past, demand remained muted in north, central and western India at 3-5 per cent and volume growth declined by around five per cent in south India