Economy & Market

External factors affecting cement demand

Published

4 years ago

October 14, 2021

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Factors such as rains and festivities affect cement demand in India every year from August to November. Even discounts offered by MNC cement companies to meet their year-end targets also lead to reduction in realisations. But, there are certain other exogenous factors which are affecting the demand and realisations of cement in northern and southern regions of the country. Factors such as ban on sand mining, shut-down of brick kilns and shortage of wagons have slowed down the overall construction activities and hence affecting the demand for cement. Firstly, a ban imposed by Punjab and Haryana on sand mining has made the construction ingredient quite expensive. Price of sand carried in tractor, having a space of 150 cubic feet, has increased from Rs 1,200 to Rs 2,500 approximately. A decision to lift the ban had been postponed to 20th January from January 9. The second factor is the lower availability of bricks which is one of the primary materials in construction. The Supreme Court ordered for the closure of brick-kilns not having environment clearance. As a result a large number of kilns were closed and there is a huge shortage of bricks. Efforts to setup fly-ash brick kilns have not been of much help as the process has been really slow due to cost issues. Lastly, a shortage of rail freight cement wagons has prevented cement producers in southern India, to supply cement in eastern and northern regions. South-based players look to supply in other regions due to overcapacity in southern India. Road transport not being feasible (due to greater distance), a shortage in rail wagons has hurt the cement players.

Concrete

CCU testbeds in Tamil Nadu

Published

2 days ago

August 12, 2025

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Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

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Concrete

JSW Cement gears up for IPO

Published

2 days ago

August 12, 2025

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JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

Concrete

Cement industry to gain from new infrastructure spending

Published

3 weeks ago

July 24, 2025

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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/