Cement demand to grow 4-7% in FY22: CARE

27 May 2021 CW Team

According to ratings agency Credit Analysis and Research Ltd (CARE), cement demand in India will rise by 4-7% in FY22 despite the second wave of the Covid-19 pandemic.

The rise in demand is expected even in the rural demand areas. CARE expects cement demand to rise from 4% to 7% in FY22.

Due to the relaxation in constraints from July, the demand is assumed to rise progressively as the situation improves based on the decline in the spread of the virus and the availability of vaccines.

The production has increased to 13.3% in March from that in February and jumped to 32.5% from FY20.

The demand was mainly due to the decline in infrastructure activities especially in -- residential real estate sector including affordable housing.

The hike in demand could also be due to the usual increase in construction activities with nearing to March-end quarter right before the arrival of monsoon.

In spite of this, there has been a production fall of 12% compared to the 0.9% decline in FY20 and a growth of 13.1% FY19.

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Also read: Cement demand may surpass 340 mt in FY22: ICRA

Also read: Cement demand to sustain: India Ratings and Research

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