+
Cement prices shows an uptick in March as demand grows
Cement

Cement prices shows an uptick in March as demand grows

Cement prices increased in March when compared to the previous month. After remaining relatively stable in the three months leading up to February, prices in March surpassed the November high.

This could help cement companies offset the impact of higher input costs while also benefiting from increased demand.

On a month-over-month basis, the pan India average cement price rose by over 10% to Rs 395 per 50 kg bag as of March 22, 2022, according to various brokerage reports based on dealer interactions. Based on a year-over-year comparison, it increased by 11%.

Given the slow pace of project awarding and execution, as well as issues related to sand availability, the average price had peaked at Rs 385 per 50 kg in November over the previous 12 months, leaving cement makers little room to raise prices.

Prices began to firm up again in March, according to sector trackers, as the sector enters a seasonally strong period for construction activities.

Furthermore, the government's speed in awarding road projects has accelerated. The rising cost of raw materials is expected to be alleviated by the buoyancy in cement prices.

In the last three months, prices of key raw materials such as imported coal and petcoke have risen by as much as 50%.

Analysts predict that cement consumption in the March quarter will be higher than in the previous quarter.

Given the likelihood of increased demand, the full benefit of higher cement prices is expected to be reflected in cement companies' financial performance beginning in the second quarter of 2022.

Image Source

Also read: Steel, cement costs jumps up by 35% over last two months

Cement prices increased in March when compared to the previous month. After remaining relatively stable in the three months leading up to February, prices in March surpassed the November high. This could help cement companies offset the impact of higher input costs while also benefiting from increased demand. On a month-over-month basis, the pan India average cement price rose by over 10% to Rs 395 per 50 kg bag as of March 22, 2022, according to various brokerage reports based on dealer interactions. Based on a year-over-year comparison, it increased by 11%. Given the slow pace of project awarding and execution, as well as issues related to sand availability, the average price had peaked at Rs 385 per 50 kg in November over the previous 12 months, leaving cement makers little room to raise prices. Prices began to firm up again in March, according to sector trackers, as the sector enters a seasonally strong period for construction activities. Furthermore, the government's speed in awarding road projects has accelerated. The rising cost of raw materials is expected to be alleviated by the buoyancy in cement prices. In the last three months, prices of key raw materials such as imported coal and petcoke have risen by as much as 50%. Analysts predict that cement consumption in the March quarter will be higher than in the previous quarter. Given the likelihood of increased demand, the full benefit of higher cement prices is expected to be reflected in cement companies' financial performance beginning in the second quarter of 2022. Image Source Also read: Steel, cement costs jumps up by 35% over last two months

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?