Economy & Market
Prices start inching up as construction season sets in
Published
7 years agoon
By
admin
There is no respite in growth in demand. Taking cue from this development, some medium and small players are testing the market with small hikes.
After falling 2.61 per cent in December 2018 from the lifetime peak of 2054.7 points, the ET Cement Index that tracks domestic cement price movements bounced back by 2.35 per cent to 2048 points in January 2019, mostly on the back of beginning of a new construction season. The index is unlikely to rebound from here with the lifetime peak just seven points away and several cement industry majors are still opting for building higher volumes to hiking prices. If it breaks out of the life peak and continued its journey upwards for a couple of months in succession we can say there is a secular upward trend in prices.
Sandeep Dubey, Lead Analyst – Research, Edelweiss Broking Limited, who prepared a report on various issues impacting the cement industry based on his interactions with various stakeholders at the ICR Cement Expo 2018 held in Hyderabad on December 20-21, 2018, said, ‘While many players who attended the conference were of the view that FY19E (2018-19 Estimate) demand will grow by 7-8 per cent, they believe that demand is expected to outpace GDP growth, going forward. Subsequently, the per capita cement consumption will inch up to 300 kg by FY21E.‘
Management of South-based companies expect Andhra Pradesh (AP)/Telangana markets to continue growing at over 15 per cent, primarily led by strong demand emanating from the government-led infrastructure and irrigation projects. Maharashtra market is expected to grow at 10 per cent, while Karnataka region is expected to grow at 5 per cent. On contrary, the companies foresee subdued demand in Tamil Nadu and Kerala market on account of lower construction activities and low availability of sand in some regions, Dubey added.
Commenting on the UltraTech Cement results for the quarter ended December 2018, Vaibhav Agarwal of PhillipCapital India said that though their operating numbers have beat their/consensus numbers by 4 per cent/1 per cent respectively, absence of pricing power vs. peers visible in Q3 numbers was the only key concern for the company. That means UltraTech Cement did not participate in the recent price hikes effected by cement companies.
In fact, UltraTech has been pushing volumes for quite a while instead of hiking prices of its products in the process of assimilating Binani Cement, which it has acquired under insolvency process a few months back.
MARGIN PRESSURE
Though cement demand is expected to grow in double digits during FY19 (2018-19) with pre-election thrust to infrastructure, the unit EBITDA (Earnings before interest, tax, depreciation and amortisation) margins are shrinking, due to prices remaining low, said the leading brokerage CLSA in a report.
‘FY19 (2018-19) is likely to end with near double-digit demand growth, which will also take up utilisation. This much-anticipated event, however, has been a big disappointer as prices did not see any benefit and in fact, unit EBITDA margins contracted in FY19,’said CLSA’s Investment Analyst team led by Vivek Maheshwari, while trimming its FY19-21 EPS estimates for the major players by 3-15 per cent. ‘Lower energy prices are a relief, but cement prices are the key, and uncertainty prevails here, which is quite counter-intuitive in the context of rising utilisation rates,’Maheshwari added. Cement price hikes is a must for stock price performance, feels CLSA. Over the past decade, the cement industry has witnessed a decline in utilisation rates, despite which, cement prices have held up fairly well.
Stating that the industry feedback indicated that FY19 growth of 9-10 per cent has primarily come from government-led infrastructure and a boost from pre-election spending (states as well as centre), the CLSA report predicted a 7 per cent growth for FY20, ‘despite a tough base.’Across regions, the south and east have witnessed strong growth while the west faces some challenges.
Over the past several years, a weak macro weighed on cement demand which reported growth of sub-5 per cent growth over FY11-18 (FY18 growth of 8.5 per cent is off a very low base).
Cement supply additions continued and rose 5 per cent year-on-year (YoY), but trailed incremental demand in FY19, which drove up industry utilisation by around 3 percentage points YoY to 69 per cent in FY19, the report said, while pegging the CAGR of 4.5 per cent in utilisation, given upcoming capacities, said Maheshwari.
RISE IN PREMIUM
‘Of late, pricing discipline is a result of joint effort by both small cap and large cap players and it’s bound to increase amid the busy construction season which will start from January 2019 onwards. As an alternative, cement companies have been trying to increase the share of their premium category,’says Dubey.
Traditionally, housing sector comprises 60-65 per cent of total demand while infrastructure took the backseat with merely 30 per cent of demand. Of late, roads and infrastructure segment has gained huge traction with multiple projects being executed in smart cities, airports, metro projects, sea ports and affordable housing segments, acting as a new trigger. ‘Share of bulk cement has shot up to 20 per cent from mere 5 per cent (in FY2013). Ready Mix Concrete (RMC) demand has picked up significantly on the back of humongous demand arising from metro projects, mass housing projects, and high-rise residential projects,’according to what Dubey gathered from the stakeholders.
Southern region is witnessing divergent
demand with Andhra Pradesh/Telangana persistently growing robust, while Tamil Nadu still facing the heat of sand mining ban (as per managements), despite the advent of mechanised sand, says the Edelweiss report.
– BS SRINIVASALU REDDY
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Concrete
Digital process control is transforming grinding
Published
3 weeks agoon
February 20, 2026By
admin
Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, delves into how digital intelligence is transforming cement grinding into a predictive, stable, and energy-efficient operation.
Grinding sits at the heart of cement manufacturing, accounting for the largest share of electrical energy consumption. In this interview, Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, explains how advanced grinding technologies, data-driven optimisation and process intelligence are transforming mill performance, reducing power consumption and supporting the industry’s decarbonisation goals.
How has the grinding process evolved in Indian cement plants to meet rising efficiency and sustainability expectations?
Over the past decade, Indian cement plants have seen a clear evolution in grinding technology, moving from conventional open-circuit ball mills to high-efficiency closed-circuit systems, Roller Press–Ball Mill combinations and Vertical Roller Mills (VRMs). This shift has been supported by advances in separator design, improved wear-resistant materials, and the growing use of digital process automation. As a result, grinding units today operate as highly controlled manufacturing systems where real-time data, process intelligence and efficient separation work together to deliver stable and predictable performance.
From a sustainability perspective, these developments directly reduce specific power consumption, improve equipment reliability and lower the carbon footprint per tonne of cement produced.
How critical is grinding optimisation in reducing specific power consumption across ball mills and VRMs?
Grinding is the largest consumer of electrical energy in a cement plant, which makes optimisation one of the most effective levers for improving energy efficiency. In ball mill systems, optimisation through correct media selection, charge design, diaphragm configuration, ventilation management and separator tuning can typically deliver power savings of 5 per cent to 8 per cent. In VRMs, fine-tuning airflow balance, grinding pressure, nozzle ring settings, and circulating load can unlock energy reductions in the range of 8 per cent to 12 per cent. Across both systems, sustained operation under stable conditions is critical. Consistency in mill loading and operating parameters improves quality control, reduces wear, and enables long-term energy efficiency, making stability a key operational KPI.
What challenges arise in maintaining consistent cement quality when using alternative raw materials and blended compositions?
The increased use of alternative raw materials and supplementary cementitious materials (SCM) introduces variability in chemistry, moisture, hardness, and loss on ignition. This variability makes it more challenging to maintain consistent fineness, particle size distribution, throughput and downstream performance parameters such as setting time, strength development and workability.
As clinker substitution levels rise, grinding precision becomes increasingly important. Even small improvements in consistency enable higher SCM utilisation without compromising cement performance.
Addressing these challenges requires stronger feed homogenisation, real-time quality monitoring and dynamic adjustment of grinding parameters so that output quality remains stable despite changing input characteristics.
How is digital process control changing the way grinding performance is optimised?
Digital process control is transforming grinding from an operator-dependent activity into a predictive, model-driven operation. Technologies such as online particle size and residue analysers, AI-based optimisation platforms, digital twins for VRMs and Roller Press systems, and advanced process control solutions are redefining how performance is managed.
At the same time, workforce roles are evolving. Operators are increasingly focused on interpreting data trends through digital dashboards and responding proactively rather than relying on manual interventions. Together, these tools improve mill stability, enable faster response to disturbances, maintain consistent fineness, and reduce specific energy consumption while minimising manual effort.
How do you see grinding technologies supporting the industry’s low-clinker and decarbonisation goals?
Modern grinding technologies are central to the industry’s decarbonisation efforts. They enable higher incorporation of SCMs such as fly ash, slag, and limestone, improve particle fineness and reactivity, and reduce overall power consumption. Efficient grinding makes it possible to maintain consistent cement quality at lower clinker factors. Every improvement in energy intensity and particle engineering directly contributes to lower CO2 emissions.
As India moves toward low-carbon construction, precision grinding will remain a foundational capability for delivering sustainable, high-performance cement aligned with national and global climate objectives.
How much potential does grinding optimisation hold for immediate energy
and cost savings?
The potential for near-term savings is substantial. Without major capital investment, most plants can achieve 5 per cent to 15 per cent power reduction through measures such as improving separator efficiency, optimising ventilation, refining media grading, and fine-tuning operating parameters.
With continued capacity expansion across India, advanced optimisation tools will help ensure that productivity gains are not matched by proportional increases in energy demand. Given current power costs, this translates into direct and measurable financial benefits, making grinding optimisation one of the fastest-payback operational initiatives available to cement manufacturers today.
Concrete
Refractory demands in our kiln have changed
Published
3 weeks agoon
February 20, 2026By
admin
Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, points out why performance, predictability and life-cycle value now matter more than routine replacement in cement kilns.
As Indian cement plants push for higher throughput, increased alternative fuel usage and tighter shutdown cycles, refractory performance in kilns and pyro-processing systems is under growing pressure. In this interview, Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, shares how refractory demands have evolved on the ground and how smarter digital monitoring is improving kiln stability, uptime and clinker quality.
How have refractory demands changed in your kiln and pyro-processing line over the last five years?
Over the last five years, refractory demands in our kiln and pyro line have changed. Earlier, the focus was mostly on standard grades and routine shutdown-based replacement. But now, because of higher production loads, more alternative fuels and raw materials (AFR) usage and greater temperature variation, the expectation from refractory has increased.
In our own case, the current kiln refractory has already completed around 1.5 years, which itself shows how much more we now rely on materials that can handle thermal shock, alkali attack and coating fluctuations. We have moved towards more stable, high-performance linings so that we don’t have to enter the kiln frequently for repairs.
Overall, the shift has been from just ‘installation and run’ to selecting refractories that give longer life, better coating behaviour and more predictable performance under tougher operating conditions.
What are the biggest refractory challenges in the preheater, calciner and cooler zones?
• Preheater: Coating instability, chloride/sulphur cycles and brick erosion.
• Calciner: AFR firing, thermal shock and alkali infiltration.
• Cooler: Severe abrasion, red-river formation and mechanical stress on linings.
Overall, the biggest challenge is maintaining lining stability under highly variable operating conditions.
How do you evaluate and select refractory partners for long-term performance?
In real plant conditions, we don’t select a refractory partner just by looking at price. First, we see their past performance in similar kilns and whether their material has actually survived our operating conditions. We also check how strong their technical support is during shutdowns, because installation quality matters as much as the material itself.
Another key point is how quickly they respond during breakdowns or hot spots. A good partner should be available on short notice. We also look at their failure analysis capability, whether they can explain why a lining failed and suggest improvements.
On top of this, we review the life they delivered in the last few campaigns, their supply reliability and their willingness to offer plant-specific custom solutions instead of generic grades. Only a partner who supports us throughout the life cycle, which includes selection, installation, monitoring and post-failure analysis, fits our long-term requirement.
Can you share a recent example where better refractory selection improved uptime or clinker quality?
Recently, we upgraded to a high-abrasion basic brick at the kiln outlet. Earlier we had frequent chipping and coating loss. With the new lining, thermal stability improved and the coating became much more stable. As a result, our shutdown interval increased and clinker quality remained more consistent. It had a direct impact on our uptime.
How is increased AFR use affecting refractory behaviour?
Increased AFR use is definitely putting more stress on the refractory. The biggest issue we see daily is the rise in chlorine, alkalis and volatiles, which directly attack the lining, especially in the calciner and kiln inlet. AFR firing is also not as stable as conventional fuel, so we face frequent temperature fluctuations, which cause more thermal shock and small cracks in the lining.
Another real problem is coating instability. Some days the coating builds too fast, other days it suddenly drops, and both conditions impact refractory life. We also notice more dust circulation and buildup inside the calciner whenever the AFR mix changes, which again increases erosion.
Because of these practical issues, we have started relying more on alkali-resistant, low-porosity and better thermal shock–resistant materials to handle the additional stress coming from AFR.
What role does digital monitoring or thermal profiling play in your refractory strategy?
Digital tools like kiln shell scanners, IR imaging and thermal profiling help us detect weakening areas much earlier. This reduces unplanned shutdowns, helps identify hotspots accurately and allows us to replace only the critical sections. Overall, our maintenance has shifted from reactive to predictive, improving lining life significantly.
How do you balance cost, durability and installation speed during refractory shutdowns?
We focus on three points:
• Material quality that suits our thermal profile and chemistry.
• Installation speed, in fast turnarounds, we prefer monolithic.
• Life-cycle cost—the cheapest material is not the most economical. We look at durability, future downtime and total cost of ownership.
This balance ensures reliable performance without unnecessary expenditure.
What refractory or pyro-processing innovations could transform Indian cement operations?
Some promising developments include:
• High-performance, low-porosity and nano-bonded refractories
• Precast modular linings to drastically reduce shutdown time
• AI-driven kiln thermal analytics
• Advanced coating management solutions
• More AFR-compatible refractory mixes
These innovations can significantly improve kiln stability, efficiency and maintenance planning across the industry.
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