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

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code