Cement demand-supply during Q1 FY2021

Domestic cement production has fallen by 38.3 per cent during the first quarter of FY2021 as compared with the 16.3 per cent and 1 per cent growth in production achieved during Q1 FY2019 and Q1 FY2020. The outbreak of the COVID-19 pandemic has seriously affected cement production. A fall in demand for cement from housing and construction activities and units operating at sub-par capacities with staggered shifts has led to the fall in production. The onset of the monsoon has also impacted domestic output during Q1 FY2021.Due to the nationwide lockdown, capacity utilisation of domestic cement manufacturers was around 40 per cent during the quarter. The manufacturers have cut down or deferred capital expenditure as a result. Cement demand is currently being driven by rural India due to better labour availability.