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Cement production to grow by 5-7% in FY20, amid stable prices

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Cement production in the country is likely to grow by 5-7 per cent during FY20 (2019-20). Roads, urban infrastructure and commercial real estate are seen as the key demand drivers for cement.

During 2018-19, cement production grew by 13.3 per cent to 337.3 million tonne (mt) against 6.3 per cent growth in FY18, the fastest growth in production of cement recorded in one single year over the last decade.

"Southern and eastern regions would continue to be the major regional demand drivers. Prices are expected to remain stable. Retail segment demand would be the key to strengthening of cement prices. Eastern region may witness strengthening of cement prices followed by western and central regions", said Care Ratings in a report titled "Manufacturing & Service Industries: Review FY19 & Outlook FY20."

Destruction due to cyclone Fani is also expected to drive demand in the coastal region of eastern states namely Odisha and West Bengal in Q1FY20, the report added. It may be noted that the extremely severe cyclonic storm Fani, which made a landfall in Puri, had caused widespread damage in Odisha.

In the last financial year, government’s thrust on development of urban infrastructure, roads and highways and ports, coupled with steady demand from real estate, especially segments like commercial realty, rural and affordable housing were the key demand drivers of cement.

"The institutional demand for cement (infra and real estate) remained strong during the year (FY19). Implementation of key projects across infrastructure segments like roads, urban infrastructure and rural by the government prior to General Elections led to strong cement demand. Cement volume growth from these segments of construction was strong across states like Uttar Pradesh, Madhya Pradesh, Delhi-NCR, Odisha, Bihar and Rajasthan", the report highlighted.

Retail segment demand was strong in the southern states especially Kerala and Tamil Nadu as these states were affected by natural disasters that led to large-scale reconstruction in Q3 and Q4 of FY19. Demand from retail segment led to increase in prices of cement across these markets.

In other regions, especially northern and central, cement producers chose to partly pass-on increased costs of input materials like limestone, coke and coal, to consumers. A two to five per cent increase in 50-kg bags was reported across these regions.

Overall capacity utilisation for the sector was around 71 per cent during the year (FY19), which is a positive for the sector and is expected to drive investments over the next three years, the rating agency exuded hope.

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Concrete

Cement industry to gain from new infrastructure spending

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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/

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Concrete

AI boom drives demand, says ACA

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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

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Concrete

GoldCrest Cement to build plant in India

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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.

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