Indian Cement Review wishes a very happy and prosperous 2012 to all its readers and subscribers. Good wishes are needed to navigate the tumultuous times ahead in this year.With the devaluation in the rupee and the crisis In the Eurozone region, industrial confidence around the world is at an all time low. GDP growth estimates vary from 6 to 7% depending upon the economists you rely upon. Although there is complete truth in the fact that the RBI in its quest to tame inflation, has choked growth too but the government spending too has declined sharply during the period and thus seems to have dented the multiplier effect severely. The cover story in the current issue focuses on the year gone by for the cement industry and an analysis of the coming year. As per a report by the CMAI, the country produced 98.81 mt of cement in April-October 2011 which is only 1.2 percent higher than 96.75 mt produced in 2010. A slowdown in demand for cement has been noticed from the housing industry and if the trend continues, the annual growth in demand for cement will remain in the range of 3 per cent on a year on year basis, in 2011-12. However, the year ahead looks positive as housing projects are expected to pick up momentum and the government resumes its spending on infrastructure projects post the UP elections which are serving as a deterrent to economic activity.Coal India’s (CIL) new pricing policy has come as a shock for user industries. The notified price of domestic coal will now be linked to its grade based on gross calorific value. In the earlier system, the notified price was based on useful heat value. The shift to a new pricing mechanism means that power-intensive industries, which use higher grades of coal, will now face increased power and fuel costs.Cement prices in the eastern region have averaged Rs 265 while prices in the western, southern and central regions stood at Rs 260, Rs 255 and Rs 240 respectively per bag in the current month. The challenge lies in maintaining the balance between price and production without hurting demand.Please send in your feedback/letters to editorial@indiancementreview.com