Coal news and updates

India’s cement demand to rise in next few qtrs

May 19: India’s cement demand, which had been at a lower ebb in the final quarter (January–March) of last fiscal (2014-15), is likely to pick up in the forthcoming quarters of the current fiscal, based on various government projects , said various cement companies.

“Steps taken by the new government, such as development of infrastructure, housing for all, smart cities, the Swachh Bharat initiative and ‘Make in India’ campaign … are likely to help improve demand,” said Birla Corporation, adding that “while the signals are positive, ground-level actions will help rev up the economy. It is expected that demand-supply mismatch will reverse gradually with slower pace of capacity addition.”

Expressing similar views, ACC Cement Limited said, “Cement demand is likely to improve in the next two quarters (of 2015-16).”

During the final quarter of 2014-15, most of the cement companies’ net profit suffered due to sluggish demand and lower cement prices across India. Additionally, higher power and fuel charges and freight rates affected the net profit of companies such as JK Lakshmi Cement.

“The cement industry has witnessed an unprecedented January-March quarter with a negative growth which is normally characterised as one of the better quarters in terms of volumes as well as in terms of prices…,” A JK Lakshmi statement said.

Unseasonal rains during the final quarter affected rural consumption, the statement added. “On account of the fall in demand, cement surplus increased considerably in the company’s marketing zone and hence the process declined continuously,” it said.

“With the prediction of a weak monsoon in the current financial year, the demand from the rural market may be impacted adversely,” said a statement from Birla Corporation.