Cement industry set to grow 3% in Q3
Cement

Cement industry set to grow 3% in Q3

In a recent report, Jefferies says a notable decline in cement prices across all regions in December 2023, registering a range between 1-2%. This pricing adjustment sets the stage for a meticulous examination of the sector?s overall performance.

According to the report, the anticipated growth for the cement sector in the third quarter of the fiscal year 2023-24 is pegged at 3% Quarter-over-Quarter (QoQ), aligning seamlessly with initial expectations. This steady growth projection underscores a measured and consistent trajectory for the industry.

Highlighting regional variations in growth, Jefferies has identified the Southern region to experience the highest growth in Q3, while other regions are expected to witness growth ranging from flat to 3%. This regional divergence adds an intriguing dimension to the sector?s performance metrics.

Jefferies observed a mixed demand trend in December, following the sub-10% Year-over-Year (YoY) growth witnessed in the combined months of October and November 2023. This fluctuation signals a certain level of unpredictability in the market, keeping industry participants on alert.

Despite the recent decline in prices, the report underscores optimistic sentiments among dealers, with many anticipating an improvement in cement prices from the third week of January. This forward-looking perspective suggests a potential rebound in the market and offers a glimmer of optimism for stakeholders.

A notable positive factor outlined in the report is the easing of energy costs, deemed favorable for the cement sector. Given that energy costs constitute a significant portion of production expenses, any relief in this area is likely to positively impact the overall operational margins of cement manufacturers.

In a recent report, Jefferies says a notable decline in cement prices across all regions in December 2023, registering a range between 1-2%. This pricing adjustment sets the stage for a meticulous examination of the sector?s overall performance. According to the report, the anticipated growth for the cement sector in the third quarter of the fiscal year 2023-24 is pegged at 3% Quarter-over-Quarter (QoQ), aligning seamlessly with initial expectations. This steady growth projection underscores a measured and consistent trajectory for the industry. Highlighting regional variations in growth, Jefferies has identified the Southern region to experience the highest growth in Q3, while other regions are expected to witness growth ranging from flat to 3%. This regional divergence adds an intriguing dimension to the sector?s performance metrics. Jefferies observed a mixed demand trend in December, following the sub-10% Year-over-Year (YoY) growth witnessed in the combined months of October and November 2023. This fluctuation signals a certain level of unpredictability in the market, keeping industry participants on alert. Despite the recent decline in prices, the report underscores optimistic sentiments among dealers, with many anticipating an improvement in cement prices from the third week of January. This forward-looking perspective suggests a potential rebound in the market and offers a glimmer of optimism for stakeholders. A notable positive factor outlined in the report is the easing of energy costs, deemed favorable for the cement sector. Given that energy costs constitute a significant portion of production expenses, any relief in this area is likely to positively impact the overall operational margins of cement manufacturers.

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?