+
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

Naidu Seeks Rs 563 Crore For AP Sports Infrastructure

Andhra Pradesh Chief Minister N Chandrababu Naidu has sought Rs 563 crore from the Centre to boost sports infrastructure in the state, including Rs 538 crore for stadium development and Rs 25 crore to host the Khelo India Martial Arts Games 2025. Naidu made the request during a meeting with Union Youth Services and Sports Minister Mansukh Mandaviya in New Delhi on Wednesday.The CM urged early completion of Khelo India infrastructure projects in Tirupati, Rajahmundry, Kakinada, and Narasaraopeta, and called for an international-standard badminton training centre and a national aquatic sports hu..

Next Story
Infrastructure Transport

Tough Bidding Norms Slow NHAI Road Project Awards

Stringent bidding rules imposed by the Ministry of Road Transport & Highways (MoRTH) have led to a slowdown in project awards by the National Highways Authority of India (NHAI), despite a robust Rs 3.5 trillion pipeline. According to an HDFC Securities report, the shift to more cautious developer models now favours firms with strong balance sheets, as tighter qualification norms limit aggressive bidders.The revised norms mandate additional performance security, targeting the exclusion of players that previously submitted low bids—often 25 to 40 per cent below NHAI cost estimates—raisin..

Next Story
Infrastructure Transport

Mumbai Gets Coastal Nod for Next Promenade Phase

As Mumbai prepares to open two major sections of its expansive seafront promenade this week, the city’s civic authority has secured a key coastal clearance to advance further construction. The Maharashtra Coastal Zone Management Authority (MCZMA) has approved the commencement of work on the segment between Haji Ali and Baroda Palace, with tendering expected soon after project cost assessments.The promenade, stretching 7.5 km in length and 20 metres wide, is being designed as a flagship open space for walkers, joggers, and cyclists. Two critical stretches—2.75 km from Tata Garden to Haji Al..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?