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Cement prices set to increase as expenses surge for cement makers

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Power and fuel prices to rise by 10% in the April-June quarter

Cement prices are set to increase as costlier Asian thermal coal, and a higher gas price outlook in Europe is expected to surge expenses for cement manufacturers. Power and fuel prices are likely to rise by 10% in the April-June quarter because of a steep rise in coal and pet coke costs in March, UltraTech Cement Ltd told the media. UltraTech Cement Ltd told the media that price hikes would be passed on to consumers for profitability to enhance sequentially. In April, the pan-India cement maker indicated a price hike of Rs 30 a bag to make up for higher commodity prices. Cement makers tried a Rs 15 to Rs 20 a bag hike pan-India, led by sharper growths in the south and the east for April, as per the dealer checks by Kotak Institutional Equities. Only a portion of this would get absorbed, and more such increases could be attempted in the coming weeks. The prices rose 6% year-on-year on an all-India basis for the quarter ended March. For the quarter ended March, cost inflation, muted volume growth, and inadequate price hikes led to margin contraction. UltraTech said flat volumes and its power and fuel prices were higher than pan-India peers ACC Ltd and Ambuja Cements Ltd. However, its operating profit per tonne dropped the least. Mainly, the outperformance was driven by operating leverage benefits and more increased realisationโ€”or what it makes on every tonne of cementโ€”in the east. The margin of UltraTech is likely to contract given its inventory policy and also the recent sharp increase in global energy costs has yet to reflect in the power and fuel price of the company. Higher costs of pet coke and coal are reflected in the financials of the cement producers after a lag of 30-45 days. Margins contracted for ACC and Ambuja as their prices increased. As per the Motilal Oswal report, ACC estimates a 7% demand increase in 2022 compared with 11-13% seen by the industry in the last year. Ambuja Cements said that demand is expected to be driven by rejuvenation in real estate, promising 2022 crop outlook, India’s infrastructure push, and execution of production-linked incentives to encourage domestic demand.

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Also read:ย Cement industry witnesses surge of Rs 45-50 per bag in April

Concrete

PROMECON introduces infrared-based tertiary air measurement system for cement kilns

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The new solution promisescontinuous, real-time tertiary air flow measurement in cement plant operations.

PROMECON GmbH has launched the McON IR Compact, an infrared-based measuring system designed to deliver continuous, real-time tertiary air flow measurement in cement plant operations. The system addresses the longstanding process control challenge of accurate tertiary air monitoring under extreme kiln conditions. It uses patented infrared time-of-flight measurement technology that operates without calibration or maintenance intervention.

Precise tertiary air measurement is a critical requirement for stable rotary kiln operation. The McON IR Compact is engineered to function reliably at temperatures up to 1,200ยฐC and in the presence of abrasive clinker dust. Its vector-based digital measurement architecture ensures that readings remain unaffected by swirl, dust deposits or drift. Due to these conditions conventional measurement systems in pyroprocess environments are often compromised.

The system is fully non-intrusive and requires no K-factors, recalibration or periodic readjustment, enabling years of uninterrupted operation. This design directly supports plant availability and reduces the maintenance overhead typically associated with process instrumentation in high-temperature zones.

PROMECON has deployed the McON IR Compact at multiple cement facilities, including Warta Cement in Poland. Plant operators report that the system has aided in identifying blockages, optimising purging cycles for gas burners, and supplying accurate flow data for AI-based process optimisation programmes. The practical outcomes include more stable kiln operation, improved process control, and earlier detection of process disturbances.

On the energy side, real-time tertiary air data enables reduction in induced draft fan load and helps flatten process oscillations across the pyroprocess. This translates to lower fuel and energy consumption, fewer unplanned shutdowns, and a measurable reduction in NOx peaks. This directly reflects on the downstream cost implications for plants operating SCR or SNCR systems for emissions compliance.

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Concrete

Adani Group To Set Up Cement Factory In Madhya Pradesh

Chief Minister Mohan Yadav inaugurates plant in Guna

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Adani Group (Adani) will set up a cement factory in Madhya Pradesh, the chief minister of the state announced after an inauguration ceremony in Guna. The chief minister, Mohan Yadav, described the occasion as a historic day for the state and said the project will strengthen industrial capacity. The event was presented as a milestone in efforts to broaden manufacturing and attract large-scale investment. Officials said the facility will add to regional production capability and support related industries.

State officials outlined that the plant will enhance supply chains for construction and infrastructure projects across the region. The company will bring technical expertise and logistical resources to the site, with government agencies coordinating approvals and land allocation. Local suppliers and service providers will benefit from increased demand, and training initiatives will be developed to build workforce readiness. Officials indicated that the project complements broader plans to modernise industrial clusters in the state.

The state administration said it has facilitated clearances and infrastructure support to accelerate implementation. Local officials have coordinated with the company to ensure connectivity and utilities are in place ahead of commissioning. The chief minister emphasised that collaboration between private investors and the government aims to create sustainable economic growth. Community outreach programmes will address local concerns and establish grievance mechanisms as construction proceeds.

Officials said the inauguration in Guna marks a new phase in the state industrial story and will serve as a reference for future investments. Administrators noted that close monitoring and periodic reviews will guide timely execution and adherence to environmental and safety norms. The government affirmed its commitment to facilitating responsible industrial expansion while ensuring benefits reach local communities. Stakeholders will continue discussions on supply chain integration and long term maintenance arrangements.

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Concrete

Railways Boost Cement Movement by 170 Per Cent and Eye Fly Ash

New container wagons cut costs and speed turnaround

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Indian Railways has recorded a 170 per cent rise in cement movement in the last four months after reforms launched in November to promote rail based bulk cement logistics. The Union Railway Minister, Ashwini Vaishnaw, reviewed the container sector reforms and their implementation and described the shift as improving plant to market efficiency. The reforms introduced customised bulk cement tank containers and a bulk cement terminal policy to support multimodal handling and door to door solutions.

The new system has simplified loading and unloading by enabling mechanised operations and by reducing package losses compared with bagged cement transport. Since cement can move directly from manufacturing centres to consumption centres in standardised tank containers compatible with Ready Mix Concrete machines, two stages of handling have been eliminated and material loss has been reduced. The standard shape of the containers facilitates faster turnaround and lowers logistics costs for suppliers and builders.

The improved freight turnaround is helping to lower the delivered cost of cement, which can ease pressure on housing costs for the poor and middle class and support affordable construction. The reform is said to be environment friendly as dust generation during material transfer has fallen and fuel consumption and emissions have reduced due to modal shift from road to rail. The Make in India tank containers are designed for seamless movement between train and trailer and to enable efficient door to door movement while cutting congestion on roads.

Building on the cement reforms, officials were urged to tap the fly ash transportation market to convert industrial waste into national wealth. The minister noted that nearly 300 million metric tonnes (mn t) of fly ash is produced in the country while only about 13 million t is transported by rail and asked officials to substantially increase Railways share to serve brick kilns, cement industries and construction sites. Wider utilisation of fly ash should reduce pollution, promote recycling and lower construction material costs while strengthening sustainable freight movement across infrastructure sectors.

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