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

Choice Consultancy Wins Rs 634.7 Million Public Sector Projects

Choice Consultancy Services Pvt Ltd, the public sector advisory arm of Choice International Ltd, has secured two major project developments totalling approximately Rs 634.7 million (inclusive of GST), further solidifying its role in public sector transformation and infrastructure planning across India.The company has received a work order worth Rs 528 million from the Maharashtra Institution for Transformation (MITRA), under the Government of Maharashtra. This assignment, part of the World Bank-backed MahaSTRIDE Programme, involves setting up District Strategic Units (DSUs) across the Chhatrap..

Next Story
Infrastructure Urban

Shalibhadra Finance FY25 Profit Jumps 34% Year-on-Year

Shalibhadra Finance Limited, a leading two-wheeler financing company with a deep presence in Gujarat, Maharashtra, and Madhya Pradesh, has reported a 34 per cent year-on-year rise in net profit for FY25, reaching Rs 160 million. The company’s performance was supported by disciplined lending, cost efficiency, and robust asset quality.Financial Highlights – FY25:Net Profit: Rose 34 per cent year-on-year to Rs 160 million. Q4 FY25 profit also increased by 34 per cent to Rs 44 million.Net Interest Income (NII): Up 13 per cent YoY to Rs 295.8 million for the full year and 16 per cent to Rs 84.3..

Next Story
Infrastructure Transport

Court Orders Uttarakhand PWD to Pay Rs 172 Million to MBL

The Commercial Court in Dehradun, Uttarakhand, has directed the Public Works Department (PWD), Government of Uttarakhand, to pay Rs 172.4 million to MBL Infrastructure Ltd. in accordance with an arbitration award dated 23 March 2024. The case pertains to a completed road project under Package No. 5 for the improvement and strengthening of state roads in Nainital and Udham Singh Nagar districts.The arbitration tribunal had issued a unanimous award in favour of MBL Infrastructure Ltd., granting a payment of Rs 172.4 million, which includes interest accrued up to the date of the award. Additional..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?