Connect with us

Economy & Market

Cement production growth forecast downgraded

Published

on

Shares

Cement producers will be hit by the country’s demonetisation programme and higher pet coke prices, according to ratings agency, India Ratings and Research (Ind-Ra).
According to Ind-Ra, cement production is likely to grow by 4 per cent in the 2017 fiscal (FY17). This is down from its earlier estimate of 4-6 per cent, as the real estate and construction sectors bear the brunt of the economic impacts of demonetisation, which saw the government ban higher denomination currency notes.
Lower cement output is expected to be focused in the November-December 2016 period, Ind-Ra said. Production growth was just 0.5 per cent in November, compared to 6.2 per cent in October and 4.3 per cent on average between April and November. Prices have also fallen between Rs 15 and Rs 20 per bag.
In addition to weaker demand, Indian cement producers are having to deal with a rise in the cost of pet coke to around $60-70 per tonne from $40 per tonne at the start of FY17. More costly pet coke – as well as higher diesel prices – increases input costs for cement production, while lower demand limits the ability of cement companies to pass on higher prices to their customers, squeezing margins.
This could place smaller-scale producers under stress in coming quarters, according to Ind-Ra, although the outlook for bigger cement producers is more stable.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Concrete

Cement industry to gain from new infrastructure spending

Published

on

By

Shares

As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

Continue Reading

Concrete

AI boom drives demand, says ACA

Published

on

By

Shares

The American Cement Association projects a nearly 1Mt annual increase in US cement demand over the next three years, driven by the surge in AI data centres. Consumption by data centres is expected to grow from 247,000 tonnes in 2025 to 860,000 tonnes by 2027. With over 5,400 AI data centres currently operating and numbers forecast to exceed 6,000 by 2027, the association cautions that regulatory hurdles and labour shortages may impact the industry’s ability to meet demand.

Image source:https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1zOrih.img?w=2000&h=1362&m=4&q=79

Continue Reading

Concrete

GoldCrest Cement to build plant in India

Published

on

By

Shares

GoldCrest Cement will build a greenfield integrated plant with a 3.5Mt/yr clinker capacity and 4.5Mt/yr cement capacity. GoldCrest Cement appointed Humboldt Wedag India as engineering, procurement and construction contractor in March 2025 and targets completion by March 2027. It has signed a 40-year supply agreement with Gujarat Mineral Development Corporation for 150Mt of limestone from its upcoming Lakhpat Punrajpur mine in Gujarat.

Continue Reading

Trending News