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Construction World Magazine India | Cement production expected to cross 310 million tonne during FY19
Cement production expected to cross 310 million tonne during FY19
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Here’s an update on the Indian cement industry by CARE Ratings.
The main takeaways are:
Cement production is expected to cross 310 million tonne during FY19. We expect cement production to grow by 5.5-6.5 per cent during FY19. Housing and real estate segment demand is expected to grow by around 6-7 per cent whereas demand from infrastructure segment is expected to grow by 8-10 per cent.
With two major states – Rajasthan and Madhya Pradesh – going into Assembly elections followed by General Elections in Q1-Q2 CY2019, the demand from infrastructure and construction is expected to peak in central, eastern and western region. Utilisation in cement capacity across regions is expected to improve during the year to around 67 per cent.
Prices are expected to remain range bound and may fall further with addition of new capacity especially in the Southern region. We expect the all-India prices to remain in the range of Rs 317 (+/- 5 per cent per bag post GST) during the year.
Further fall in prices may be indicative of improvement in installed capacity utilisation especially in Southern region.
Increase in pet-coke prices in the global markets and global crude oil price leading to increase in domestic diesel prices would impact operating margins of major players during the year.
Read the full report here.
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