Demand in the cement market rises amid Corona's retreat: Prices rise slowly

- Consumption of production capacity also increased: Market activity is likely to increase in the pre-monsoon months

The country's cement market has seen a surge in demand and demand. As the Corona infestation subsided and the reopening process began in various cities and states, activity in the construction and infrastructure sectors resumed, leading to indications of increased withdrawals in the cement and iron-steel market. Prices have also gone up. According to cement market experts, the country has seen an average increase of 3 to 4 per cent in January. Such price rise has been observed especially in the eastern and southern states of the country. In the year 2021, November was the month of slow demand in the cement market, but since then, demand and inquiries have been seen again since December. However, demand remained sluggish in the first half of December and has seen a slow recovery since then, market sources said. Cement market activity in South India was slow during the months of October, November and December due to prolonged rains in South India. The controversy over sand mining in eastern India, especially in Bengal and Bihar, also had an impact on the demand for cement in these states during this period. However, inquiries for cement resumed in the second half of December and January saw a significant increase in demand, experts said. Demand continues to grow in January after February. Market prices have remained strong overall. Market inflows have been encouraging and the Corona era has seen a resurgence of sluggishness. Cement prices in the southern and eastern states of the country have risen by 3 to 4 per cent. In contrast, the western and northern states have seen a rise in cement prices of 3 to 4 per cent. Cement prices in the central Indian states, however, have seen narrow fluctuations, cement industry sources said.

Meanwhile, the use of production capacity in the cement industry is also on the rise. In the January-March quarter, the percentage of utilization of production capacity in the cement industry in the country is expected to increase to 30 to 5 per cent, experts said. Prior to this, the percentage of capacity utilization was low as demand was slow. Now that demand has risen again, consumption of production capacity has also increased. Prices have also risen. The state is currently in the throes of elections in various states, including Uttar Pradesh, and experts say the demand for cement is likely to rise further after the elections in this state. Cement prices in eastern India have recovered as much as they did in the past. If prices rise further, market analysts are predicting a 100 per cent recovery. Cement prices in West Bengal have risen by Rs 30 to Rs 40 per quintal since mid-January. While prices towards Orissa have gone up by Rs 15 to Rs 20 during this period. In the South, cement prices have risen by Rs 15 to Rs 20 per quintal during this period, while in Kerala, prices have risen by Rs 30 to Rs 30 per quintal. Coal consumption is especially high in cement production and rising coal prices have led to an increase in production costs. In January, the price of imported coal rose by about 5-7 per cent. And prices have risen to થી 150 to ૬ 151 a tonne. With crude oil prices soaring to a three-year high in the world market and a barrel price surpassing ૯૬ 3, the warmth of its rise is also being felt by the coal market. Cement producers' margins have come under pressure due to rising production costs. Now the prices have started rising but the market players are keeping an eye on whether the demand is maintained by the rising prices. The monsoon will start again in the country from June and the monsoon forecast is good. With cement withdrawals declining in the monsoon season, analysts are now hoping for market growth to continue in February, March, April and May.