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Cement producers tried a 5% hike pan-India, led by sharper increases

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Cement producers tried a 5% hike pan-India, led by sharper increases

As per the dealer checks by Kotak Institutional Equities, cement producers tried a Rs 15-20 a bag (5 per cent) hike pan-India, led by sharper increases in the south and the east for April. Only a part of this would get absorbed and more such hikes could be attempted in the coming weeks, it said.

Cement prices are set to go up as costlier Asian thermal coal and higher gas price outlook in Europe are likely to swell expenses for cement manufacturers. Power and fuel costs are likely to increase by 10 per cent in the April-June quarter because of a steep rise in coal and pet coke prices in March.

Cost inflation, muted volume growth and inadequate price hikes led to margin contraction for the quarter ended March.

UltraTech reported flat volumes and its power and fuel costs were higher than pan-India peers ACC and Ambuja Cements. Yet, its operating profit per tonne fell the least. Higher prices of petcoke and coal usually reflect in the financials of the cement makers after a lag of 30-45 days.

Margins contracted for ACC and Ambuja as their costs rose. Price hikes in a seasonally strong quarter did offset pressure to an extent.

Concrete

CCU testbeds in Tamil Nadu

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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.

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

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Concrete

JSW Cement gears up for IPO

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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.

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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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