Coal news and updates

Rising coal costs to send cement prices skywards

CEMENT is likely to become dearer with manufacturers all set to increase the prices from December to offset the rising input cost of coal, particularly the imported variety, which is used as a heating agent. 

According to industry sources, the cost of imported coal used to be 50 per cent of Indian coal. However, it has become too costly in recent times due to a four-fold increase in prices. The manufacturers are now left with no choice except to increase the prices of cement to recover expenditure.

Coal is a crucial component in cement manufacturing as it is used as an energy source and requires large quantities. A high-temperature kiln, fuelled by coal heats the raw materials like limestone and transforms them into clinker. Later, the clinker is mixed with gypsum, ground to fine powder and made into cement.

Around 100 kg of Indian coal is required to make one tonne of cement. When it comes to imported coal, only 70 to 80 kg are needed for the production of one tonne of cement, given its superior quality. When it comes to power, 75 units of electricity are required to manufacture same amount of cement.

At present, retail prices of cement are in the range of Rs 370 to Rs 400 per bag. Next month, when the season for construction activity peaks, the prices could go up at least by Rs 40 per bag and high-grade cement may cost Rs 450 per bag, the industry sources said.

In Telangana, around 15 companies including India Cements, Orient, Sagar Cements, Penna Cements, Anjani Cements and Zuari Cements manufacture and supply cement both within the State and for the rest of the country, mostly from the Nalgonda cluster. On average, there is a demand for 10 million tonnes of cement per annum, of which five million tonnes are required in Hyderabad alone.