+
Cement industry witnesses surge of Rs 45-50 per bag in April
Cement

Cement industry witnesses surge of Rs 45-50 per bag in April

With rising input costs, fluctuating imported coal prices and crude, and expectations of improving demand, the cement industry witnessed a price hike in April by Rs 45-50 per bag, which was a 12% month-on-month (MoM) hike.

It is among the steepest hike in cement prices since January. In north India, the price hike was over Rs 50 per bag, 14% MoM.

Southern Indian markets witnessed about an 8-10% hike in April, at about Rs 30 per bag. Prices are around Rs 392 -400 per bag, up from the March price of Rs 362–370 per bag.

In the western part, cement prices rose by Rs 45-50 per bag, around 12% MoM, to Rs 423 per bag.

In central India, the hike was about 11% MoM, up by around Rs 40 per bag to Rs 421 per bag in April.

The eastern market witnessed a price hike of 13-14% MoM, at Rs 384 per bag.

According to IDBI Capital, the price hike resulted in weaker demand, but demand might rebound in the coming months. The cement demand might increase to 10-12% in FY23.

The increased input cost has led to an increase in the production cost by at least Rs 60-70 per bag.

The average imported coal price has remained volatile, as it has again increased above $300 per tonne.

According to analysts, the impact of the rise in coal and petcoke prices will have a lag effect, and it will reflect in the coming quarters.

ACC Cement, which declared results for the January-March quarter, witnessed the input cost pressure take a toll on its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. The margin shrunk over 600 basis points year-on-year (YoY). Its EBITDA margin was at 14.3%, lower than 20%. However, its blended EBITDA was down by 24% YoY.

Image Source

Also read: Cement prices shows an uptick in March as demand grows

With rising input costs, fluctuating imported coal prices and crude, and expectations of improving demand, the cement industry witnessed a price hike in April by Rs 45-50 per bag, which was a 12% month-on-month (MoM) hike. It is among the steepest hike in cement prices since January. In north India, the price hike was over Rs 50 per bag, 14% MoM. Southern Indian markets witnessed about an 8-10% hike in April, at about Rs 30 per bag. Prices are around Rs 392 -400 per bag, up from the March price of Rs 362–370 per bag. In the western part, cement prices rose by Rs 45-50 per bag, around 12% MoM, to Rs 423 per bag. In central India, the hike was about 11% MoM, up by around Rs 40 per bag to Rs 421 per bag in April. The eastern market witnessed a price hike of 13-14% MoM, at Rs 384 per bag. According to IDBI Capital, the price hike resulted in weaker demand, but demand might rebound in the coming months. The cement demand might increase to 10-12% in FY23. The increased input cost has led to an increase in the production cost by at least Rs 60-70 per bag. The average imported coal price has remained volatile, as it has again increased above $300 per tonne. According to analysts, the impact of the rise in coal and petcoke prices will have a lag effect, and it will reflect in the coming quarters. ACC Cement, which declared results for the January-March quarter, witnessed the input cost pressure take a toll on its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin. The margin shrunk over 600 basis points year-on-year (YoY). Its EBITDA margin was at 14.3%, lower than 20%. However, its blended EBITDA was down by 24% YoY. Image Source Also read: Cement prices shows an uptick in March as demand grows

Next Story
Infrastructure Transport

Syama Prasad Mookerjee Port Partners to Redevelop Nimtala Ghat

Kolkata: Syama Prasad Mookerjee Port, Kolkata (SMPK), signed a Memorandum of Understanding (MoU) on Tuesday with PS Group Realty Private Limited to redevelop and beautify Nimtala Ghat as part of PS Group’s Corporate Social Responsibility (CSR) initiative.The agreement was formalised at SMPK’s Head Office at 15, Strand Road, in the presence of SMPK chairman Rathendra Raman, deputy chairman Samrat Rahi, PS Group directors Saurav Dugar, Gaurav Dugar, Arun Sancheti, and senior SMPK officials.Under the MoU, PS Group will undertake the full redevelopment and permitted construction of Nimtala Imm..

Next Story
Infrastructure Urban

CSIR-NCL and Covestro Collaborate to Upcycle Polyurethane Waste

In a move towards sustainable plastic waste management, Pune-based CSIR-National Chemical Laboratory (CSIR-NCL) signed a Memorandum of Understanding (MoU) with Covestro (India) Private Limited on Wednesday to develop innovative upcycling technologies for polyurethane waste.Polyurethane is notoriously difficult to recycle, with current methods often proving inefficient, costly, and environmentally harmful. This collaboration aims to address existing challenges, including high energy usage and deterioration of material quality during recycling.Ashish Lele, director of CSIR-NCL, stated, “This p..

Next Story
Infrastructure Urban

Torrent Pharma Seeks CCI Approval for Rs 195 Billion JB Chemicals Deal

Ahmedabad-based Torrent Pharmaceuticals has sought clearance from the Competition Commission of India (CCI) to acquire a majority stake in J B Chemicals and Pharmaceuticals in a Rs 195 billion deal.Upon completion, Torrent Pharmaceuticals will become India’s second most valuable pharmaceutical company.The move follows Torrent’s June announcement to acquire a majority stake in J B Chemicals for Rs 195 billion.“The proposed combination pertains to the acquisition of shareholding by Torrent Pharmaceuticals Ltd in J B Chemicals & Pharmaceuticals Ltd, followed by the merger of the target ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?