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India to Outpace Major Steel-Consuming Economies In 2025

Finished steel imports from all key exporters to India have increased.

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India will continue to outpace other major steel-consuming economies in calendar year 2025 with a demand growth of 8-9 per cent, CRISIL’s Market Intelligence and Analytics report said. This demand will be driven by a shift towards steel-intensive construction in the housing and infrastructure sectors along with better demand from engineering, packaging and other segments, the report added. The report, however, highlights that the domestic supply will remain a “point of concern,” adding that the demand is estimated to have increased by 11 per cent in India.
Competitive imports and a decline in exports also played a role in weaker production growth in 2024. While finished steel imports increased by 24.5 per cent, exports declined by 6.4 per cent, leading to additional availability of 3.2 million tonnes of finished steel apart from domestic production. This additional material availability accounted for 2 per cent of the total finished steel demand.
The report added that the finished steel imports from all key exporters to India have increased significantly in the past few years. For instance, China has traditionally been an exporter of value-added products and speciality steel such as galvanised and coated steel, alloy steel and stainless steel to India, with a minimal share of hot-rolled coils and strips (HRC) and cold-rolled coils and strips (CRC).
However, between 2022 and 2024, while finished steel imports from China increased 2.4-fold, imports of HRC jumped 28-fold. Notably, HRC is used as feed material to produce various value-added downstream products, and these imports are often at a discount to domestic HRC prices, creating price pressure on domestic steel. Similarly, the overall finished steel import from Japan increased 2.8-fold in 2024 from the base of 2022, while HRC imports increased 16.6-fold. Finished steel imports from Vietnam increased 8-fold, while HRC imports jumped 27-fold.
Import growth from South Korea was relatively modest, bringing down its share in India’s finished steel import basket. Domestic steel prices, meanwhile, declined in 2024, impacted by additional material availability due to an increase in net imports. HRC prices declined 9 per cent, and CRC prices declined 7 per cent, thereby slowing the topline growth of domestic mills. Nevertheless, low volatility and declining coking coal prices have helped to lessen margin pressure to some extent, as per the report.
While iron ore prices are predicted to have risen by 9-10 percent during the period, the spot price of coking coal for the Premium Low Volatility grade, which is of Australian origin, fell by 12 percent in 2024. Notably, the price of China HRC exports fell by 12 percent in 2024 and continues to be lower than the price of domestic mills.
The report added that the imposition of a safeguard duty proposed by the industry could be a positive and if implemented, steel prices in 2025 would be much higher than 2024, with the impact more prominent in the first half.

Economy & Market

Budget 2025: Paving the way for India’s cement sector expansion

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The Union budget 2025-2026 sets the foundation for a resilient and progressive nation, with the cement industry poised to play a pivotal role in this transformative journey, says Neetu Vinayek.

India is the second largest cement producer in the world after China. The Economic Survey for 2024-25 mentioned that the current cement industry in India has adequate capacity to meet domestic demand. The Union Budget for fiscal year 2025-2026 solidifies the foundations of India’s infrastructure and economic growth. Government’s strategic focus on infrastructure will stimulate surge in demand for cement in the fiscal year.

The Union Budget’s strategic focus on infrastructure development, with a massive capital expenditure of Rs 11.21 trillion, indicates a bolster for India’s construction sector. One of the strategic initiatives is the establishment of an Urban Challenge Fund with an allocation of Rs 1 trillion, aimed at implementing ‘Cities as Growth Hubs’. This is likely to trigger a wave of construction projects across urban India. Additionally, the government’s proposal to establish the Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund 2, with a corpus of Rs 150 billion, is designed to expedite the completion of 100,000 housing units, further boosting the housing sector.

The budget outlines each infrastructure ministry to come up with a three-year pipeline for projects that can be implemented in Public-Private Partnership (PPP) mode. This is complemented by the provision of Rs 1.5 trillion for 50-year interest-free loans to states, earmarked for capital expenditure. These financial injections into the infrastructure domain are poised to create a ripple effect, elevating the demand for cement as a core material in construction and development projects. The budget’s allocations are a clear signal of the government’s commitment to cementing the foundation for sustainable growth and modernisation of the nation’s infrastructure.

The government is set to introduce a national framework to guide states in the establishment of Global Capability Centres (GCCs) in emerging tier II cities. This framework will outline strategies to improve the availability of infrastructure, thereby supporting the growth and development of these cities. Additionally, the government will take active steps to enhance the infrastructure of warehousing for air cargo, ensuring that facilities are upgraded to meet the increasing demands of trade and logistics. These initiatives reflect a commitment to bolstering the nation’s infrastructure and facilitating economic growth across various regions.

Greenfield airports will be launched in Bihar to meet the future needs of the State. These will be in addition to the expansion of the capacity of the Patna airport and the brownfield airport at Bihta.

The ripple effects of these initiatives including infrastructure development systems, urban infrastructure, airport construction etc. will likely stimulate the entire supply chain associated with construction, including the production and supply of cement.

From fiscal policy perspective, the government’s initiative to table the new income-tax bill which is focused on simplification will help the sector adopt clear tax policies and reduce litigation. The budget announced rationalisation of requirements and procedures for speedy approvals for mergers. The scope for fast-track mergers will also be widened and process will be made simpler, this will aid the private sector with acquisitions and increase capacity.

MSME in the sector are also set to gain with increase in limits for qualifying as MSME which will allow better access to capital.

With focus on ease of doing business, the government has recognised that all regulations must keep up with technological innovations and global policy developments. A light-touch regulatory framework based on principles and trust will unleash productivity and employment. The government is working on updating regulations that were made under old laws. High level committees will be set-up to review all non-financial sector regulations, certifications, licenses, and permissions.

From tax perspective, removal of TCS on sale of goods is a welcome move and will reduce compliance burden and provide clarity on purchase of goods transaction. Further, rationalisation of limits for TDS will support MSME sector reduce compliance burden. The government has made serious of amendments for International and Financial Services Centre (IFSC) to promote and develop world-class financial infrastructure in India. It can help companies in the sector raise debt at competitive interest rates and provide access to global funds.

With positive signs for growth, manufacturers are also working towards reducing their carbon footprint and move towards green cement. For this, companies are exploring investments in new technologies, and R&D. The government has announced initiative for private sector driven research, development and innovation with allocation of Rs 200 billion. Manufacturers may seek such incentives and invest in R&D.

The Union budget 2025-2026 is a testament to the government’s integrated approach to fortifying India’s infrastructure. It sets the foundation for a resilient and progressive nation, with the cement industry poised to play a pivotal role in this transformative journey. The initiatives and policy measures announced in this budget are concrete steps toward realizing the dream of a Viksit Bharat@2047.

About the author:

Neetu Vinayek is Partner and Tax Leader – Infrastructure at EY LLP.

 

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Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15th Cement Expo 2025: https://cementexpo.in/

FOR CONFERENCE SPONSORSHIPS

Sheetal Talreja

Mob: +91 842 2874 030

Email: sheetal@IndianCementReview.com

FOR EXHIBITION/SPONSORSHIPS

Sujoy Gomes

Mob: +91 865 7795 881

Email: Sujoy.g@ASAPPinfoGlobal.com

FOR SPONSORSHIPS

Ratan Rajbhar

Mob: +91 842 2874 021

Email: ratan.r@ASAPPinfoGlobal.com

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Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

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