Cement freight data shows volume growth
Cement

Cement freight data shows volume growth

According to data shared by the Ministry of Railways, cement volumes transported by the railways grew 35% and 26% on a sequential and annual basis in the December quarter to 35.5 mt.

An analysis by JM Financial Institutional Securities Ltd showed that the correlation between the two indicates a strong cement volume growth in Q3.

Analysts said that cement demand has picked up from the second half of December on seasonal improvement in construction activity.

Despite volume growth, cement prices remained subdued, as projected through channel checks by various brokerages. As per a Reliance Securities Ltd report, the price correlation can be credited to volume push by the cement companies across the regions (barring the Southern region). The non-trade prices saw a steeper shrink, which widened the price differential between trade and non-trade segments in select portions.

Meanwhile, freight costs on volumes transported through railways on a per tonne basis increased 6% year-over-year and 3% quarter-over-quarter, as projected by the JM Financial analysis.

For cement companies, freight and forwarding costs account for 21-25% of total operating costs. The cost of key manufacturing inputs petroleum coke, among others, are witnessing a surge as well. In this backdrop, meaningful price hikes are a must to protect the operating margin.

Image source

According to data shared by the Ministry of Railways, cement volumes transported by the railways grew 35% and 26% on a sequential and annual basis in the December quarter to 35.5 mt. An analysis by JM Financial Institutional Securities Ltd showed that the correlation between the two indicates a strong cement volume growth in Q3. Analysts said that cement demand has picked up from the second half of December on seasonal improvement in construction activity. Despite volume growth, cement prices remained subdued, as projected through channel checks by various brokerages. As per a Reliance Securities Ltd report, the price correlation can be credited to volume push by the cement companies across the regions (barring the Southern region). The non-trade prices saw a steeper shrink, which widened the price differential between trade and non-trade segments in select portions. Meanwhile, freight costs on volumes transported through railways on a per tonne basis increased 6% year-over-year and 3% quarter-over-quarter, as projected by the JM Financial analysis. For cement companies, freight and forwarding costs account for 21-25% of total operating costs. The cost of key manufacturing inputs petroleum coke, among others, are witnessing a surge as well. In this backdrop, meaningful price hikes are a must to protect the operating margin. Image source

Next Story
Infrastructure Urban

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's  fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building  (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous  Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in  Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant  advancement in the company's commitment to engineered performance, manu..

Next Story
Infrastructure Urban

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Next Story
Infrastructure Urban

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App