Concrete

Most of the manufacturers are in wait and watch mode

Published

3 years ago

October 14, 2021

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Vivek Taneja, Head of Business Development ( Power), Thermax Timely policy changes and a well thought out growth plan, fortified with incentives for energy conservation, will give a strong push to the cement industry. Although order books of most plant and machinery manufacturers didn`t look exciting in 2013, the year ahead holds more potential. Vivek Taneja, Head of Business Development ( Power), Thermax says that a lot depends on how we tap the opportunities. Excerpts from the interview.

Has the economic slowdown impacted production capacity augmentation or the setting up of new cement plants?
Although some cement majors are planning for the long term and will stay the course , the pace could be slower than anticipated. From our discussions with some manufacturers, it appears that most cement companies are adopting a strategy of wait and watch before moving ahead with their capacity expansion plans. So, to some extent, yes there has been an impact.

Are you optimistic about the growth of the cement sector?
From our discussions on captive power requirements, we understand that the total capacity addition predicted during the 12th Five Year Plan will depend on the infrastructure development facilitated by government policies. If the present economic policy stasis continues, future capacity addition is going to be limited. However, we are optimistic about the potential in this sector from the long- term perspective..

What policy changes will help the cement industry regain momentum from the year 2014 onwards?
On a near term basis, there could be faster decisions related to infrastructure projects like ports, roads, etc; lowering of interest rates to facilitate growth of consumption in housing; making available fuel for captive consumption of the cement industry (cement manufacturing as well as captive power generation); quicker MOEF and other clearances, etc. From a power perspective, the government could think of offering incentives to cement and other industries, to generate power from their large and available quantity of waste heat. This can be done by bringing power produced from waste heat under the ambit of renewable energy.

What new trends are emerging in the design of cement plans, plants and machinery, and other supporting systems ?
Designing cement plants that can harness their waste heat for power generation is being actively considered by the industry. Such a move, if backed by incentives available for renewable energy, can improve the profitability of the plants. Additionally, it will also help in better environment management as the waste heat after use for power generation will be let out at much lower temperatures.

Cement plants can reduce their overall carbon footprint and also help in reducing the national dependence on fossil fuel.

As an EPC service provider and supplier of critical plant and machinery, how has 2013 been for you?
This year has seen limited orders being finalised, and most of the manufacturers are in a wait and watch mode before the 2014 elections.

While we are optimistic on the long-term perspective, we expect industry growth to be subdued in the interim.

Concrete

Jefferies’ Optimism Fuels Cement Stock Rally

The industry is aiming price hikes of Rs 10-15 per bag in December.

Published

3 weeks ago

December 4, 2024

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Cement stocks surged over 5% on Monday, driven by Jefferies’ positive outlook on demand recovery, supported by increased government capital expenditure and favourable price trends.

JK Cement led the rally with a 5.3% jump, while UltraTech Cement rose 3.82%, making it the top performer on the Nifty 50. Dalmia Bharat and Grasim Industries gained over 3% each, with Shree Cement and Ambuja Cement adding 2.77% and 1.32%, respectively.

“Cement stocks have been consolidating without significant upward movement for over a year,” noted Vikas Jain, head of research at Reliance Securities. “The Jefferies report with positive price feedback prompted a revaluation of these stocks today.”

According to Jefferies, cement prices were stable in November, with earlier declines bottoming out. The industry is now targeting price hikes of Rs 10-15 per bag in December.

The brokerage highlighted moderate demand growth in October and November, with recovery expected to strengthen in the fourth quarter, supported by a revival in government infrastructure spending.
Analysts are optimistic about a stronger recovery in the latter half of FY25, driven by anticipated increases in government investments in infrastructure projects.
(ET)

Concrete

Steel Ministry Proposes 25% Safeguard Duty on Steel Imports

The duty aims to counter the impact of rising low-cost steel imports.

Published

3 weeks ago

December 4, 2024

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The Ministry of Steel has proposed a 25% safeguard duty on certain steel imports to address concerns raised by domestic producers. The proposal emerged during a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in New Delhi, attended by senior officials and executives from leading steel companies like SAIL, Tata Steel, JSW Steel, and AMNS India.

Following the meeting, Goyal highlighted on X the importance of steel and metallurgical coke industries in India’s development, emphasising discussions on boosting production, improving quality, and enhancing global competitiveness. Kumaraswamy echoed the sentiment, pledging collaboration between ministries to create a business-friendly environment for domestic steelmakers.

The safeguard duty proposal aims to counter the impact of rising low-cost steel imports, particularly from free trade agreement (FTA) nations. Steel Secretary Sandeep Poundrik noted that 62% of steel imports currently enter at zero duty under FTAs, with imports rising to 5.51 million tonnes (MT) during April-September 2024-25, compared to 3.66 MT in the same period last year. Imports from China surged significantly, reaching 1.85 MT, up from 1.02 MT a year ago.

Industry experts, including think tank GTRI, have raised concerns about FTAs, highlighting cases where foreign producers partner with Indian firms to re-import steel at concessional rates. GTRI founder Ajay Srivastava also pointed to challenges like port delays and regulatory hurdles, which strain over 10,000 steel user units in India.

The government’s proposal reflects its commitment to supporting the domestic steel industry while addressing trade imbalances and promoting a self-reliant manufacturing sector.

(ET)

Concrete

India Imposes Anti-Dumping Duty on Solar Panel Aluminium Frames

Move boosts domestic aluminium industry, curbs low-cost imports

Published

3 weeks ago

December 4, 2024

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The Indian government has introduced anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China, a move hailed by the Aluminium Association of India (AAI) as a significant step toward fostering a self-reliant aluminium sector.

The duties, effective for five years, aim to counter the influx of low-cost imports that have hindered domestic manufacturing. According to the Ministry of Finance, Chinese dumping has limited India’s ability to develop local production capabilities.

Ahead of Budget 2025, the aluminium industry has urged the government to introduce stronger trade protections. Key demands include raising import duties on primary and downstream aluminium products from 7.5% to 10% and imposing a uniform 7.5% duty on aluminium scrap to curb the influx of low-quality imports.

India’s heavy reliance on aluminium imports, which now account for 54% of the country’s demand, has resulted in an annual foreign exchange outflow of Rupees 562.91 billion. Scrap imports, doubling over the last decade, have surged to 1,825 KT in FY25, primarily sourced from China, the Middle East, the US, and the UK.

The AAI noted that while advanced economies like the US and China impose strict tariffs and restrictions to protect their aluminium industries, India has become the largest importer of aluminium scrap globally. This trend undermines local producers, who are urging robust measures to enhance the domestic aluminium ecosystem.

With India’s aluminium demand projected to reach 10 million tonnes by 2030, industry leaders emphasize the need for stronger policies to support local production and drive investments in capacity expansion. The anti-dumping duties on solar panel components, they say, are a vital first step in building a sustainable and competitive aluminium sector.