Connect with us

Concrete

Cement industry witnesses surge of Rs 45-50 per bag in April

Cement demand might rise to 10-12% in coming months in FY23

Published

on

Shares

With rising input costs, fluctuating imported coal prices and crude, and expectations of improving demand, the cement industry witnessed a price hike in April by Rs 45-50 per bag, which was a 12% month-on-month (MoM) hike.

It is among the steepest hike in cement prices since January. In north India, the price hike was over Rs 50 per bag, 14% MoM.

Southern Indian markets witnessed about an 8-10% hike in April, at about Rs 30 per bag. Prices are around Rs 392 -400 per bag, up from the March price of Rs 362?370 per bag.

In the western part, cement prices rose by Rs 45-50 per bag, around 12% MoM, to Rs 423 per bag.

In central India, the hike was about 11% MoM, up by around Rs 40 per bag to Rs 421 per bag in April.

The eastern market witnessed a price hike of 13-14% MoM, at Rs 384 per bag.

According to IDBI Capital, the price hike resulted in weaker demand, but demand might rebound in the coming months. The cement demand might increase to 10-12% in FY23.

The increased input cost has led to an increase in the production cost by at least Rs 60-70 per bag.

The average imported coal price has remained volatile, as it has again increased above $300 per tonne.

According to analysts, the impact of the rise in coal and petcoke prices will have a lag effect, and it will reflect in the coming quarters.

ACC Cement, which declared results for the January-March quarter, witnessed the input cost pressure take a toll on its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. The margin shrunk over 600 basis points year-on-year (YoY). Its EBITDA margin was at 14.3%, lower than 20%. However, its blended EBITDA was down by 24% YoY.


Image Source


Also read: Cement prices shows an uptick in March as demand grows

Concrete

CCU testbeds in Tamil Nadu

Published

on

By

Shares

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.

Image source:https://www.heavyequipmentguide.ca/

Continue Reading

Concrete

JSW Cement gears up for IPO

Published

on

By

Shares

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.

Continue Reading

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

Trending News

SUBSCRIBE TO THE NEWSLETTER

 

Don't miss out on valuable insights and opportunities to connect with like minded professionals.

 


    This will close in 0 seconds

    This will close in 0 seconds