Connect with us

Concrete

Cement demand declines with rising input costs in India

Published

on

Shares

Cement industries announce hike by Rs 15-20 per bag in June

Cement stocks have been hit recently due to a decline in demand and rising input prices for the sector.

Jefferies told the media that the prices of cement declined by 3% on a month-on-month (MoM) basis or Rs 11 per bag in May 2022.The company highlighted the risk of downgrades in earnings estimates has resurfaced. It said multiple markets declined due to weak demand and the smallest decline in the western and the largest in the central region.

According to a report, prices declined in May across all the regions of the country with a drop of up to Rs 35 per bag every month. The cement industry sought a price hike in early May but rolled it back due to muted demand.

The prices of cement bags declined by Rs 23 per bag in the south and Rs 18 in the central region. However, prices in eastern, northern and western regions have declined by Rs 17, Rs 15 and Rs 6, respectively.

The rising price of coal and inflation, along with the shortage of labour, is a challenge for cement companies.

According to JM Financial, petcoke prices have increased and might impact margins in the first quarter (Q1) of FY23.The volumes transported by railway freight indicate an improvement in demand on an MoM basis, as compared to last year, transported volumes in May 2022, with robust growth of 30% YoY.

According to the Emkay Global report, industries expect demand improvement on June 22 due to a recent fall in steel prices and a likely increase in pre-monsoon construction activities.

Companies have announced a price hike of Rs 15-20 per bag for the current month.

Emkay Global has chosen UltraTech Cement and Shree Cement in large-caps, Birla Corporation in mid-caps and Sagar Cement in small-caps from the sector.JM Financial has identified UltraTech Cement, Shree Cement, ACC Cement, Dalmia Bharat, JK Cement, JK Lakshmi Cement, Sagar Cement and Orient Cement across the sector.

Image Source


Also read: New wave of consolidation is expected in the cement industry

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