India cement production growth forecast downgraded
Published by Jonathan Rowland,
Editor
World Cement,
India’s cement producers will be hit by the country’s controversial demonetisation programme and higher petcoke prices, according to ratings agency, India Ratings and Research (Ind-Ra).
According to Ind-Ra, cement production is likely to grow by 4% in the 2017 Financial Year (FY17). This is down from its earlier estimate of 4 – 6%, as the real estate and construction sectors bear the brunt of the economic impacts of demonetisation, which saw the government ban higher denomination currency notes.
Lower cement output is expected to be focused in the November – December 2016 period, Ind-Ra said. Production growth was just 0.5% in November, compared to 6.2% in October and 4.3% on average between April and November. Prices have also fallen between INR15 and INR20 per bag.
In addition to weaker demand, India cement producers are having to deal with a rise in the cost of petcoke to around US$60 – US%70 per tonne from US$40 per tonne at the start of FY17. More costly petcoke – as well as higher diesel prices – increases input costs for cement production, while lower demand limits the ability of cement companies to pass on higher prices to their customers – squeezing margins.
This could place smaller-scale producers under stress in coming quarters, according to Ind-Ra, although the outlook for bigger cement producers is more stable.
Read the article online at: https://www.worldcement.com/indian-subcontinent/04012017/india-cement-production-growth-forecast-downgraded/
You might also like
Ready to revolutionise the cement industry?
Join World Cement in Lisbon, 10 – 13 March 2024, for our first in-person conference and exhibition: EnviroTech.
This exclusive knowledge and networking event will bring together cement producers, industry leaders, technical experts, analysts, and other stakeholders to discuss the latest technologies, processes, and policies being deployed at the forefront of the cement industry’s efforts to reduce its environmental footprint.
Breaking the cycle of silo buildup
Brad Pronschinske, Martin Engineering, explains how the effective use of air cannons can remedy silo buildup and clogging issues, avoiding lost production and increasing safety.
