Cement demand rises but utilisation to remain moderate, ICRA report
Cement

Cement demand rises but utilisation to remain moderate, ICRA report

Cement volumes are likely to increase by 7-8 per cent in FY23 to roughly 388 million MT, boosted by demand from the housing, both rural and urban, and infrastructure sectors, according to a research released on Monday by ratings agency ICRA.

The large rise in capital expenditure to Rs. 7.5 trillion in FY2023 budget estimates over FY2022 revised estimates, headed by Rs. 1.8 trillion for roads and Rs. 1.4 trillion for railways, is projected to bode well for cement demand, according to the report.

Cement capacity additions are likely to expand to roughly 29-32 MTPA in FY2023 from around 25 MTPA in FY2022, owing to solid demand prospects. In FY2023, the eastern area is predicted to dominate the increase, adding over 16-17 MTPA, followed by the central region, which will add roughly 6-7 MTPA. Despite an estimated increase in volumes of 7-8 per cent, capacity utilisation in the cement sector is expected to remain moderate at approximately 68 per cent on an expanded base.

Cement volumes are likely to increase by 7-8 per cent in FY23 to roughly 388 million MT, boosted by demand from the housing, both rural and urban, and infrastructure sectors, according to a research released on Monday by ratings agency ICRA. The large rise in capital expenditure to Rs. 7.5 trillion in FY2023 budget estimates over FY2022 revised estimates, headed by Rs. 1.8 trillion for roads and Rs. 1.4 trillion for railways, is projected to bode well for cement demand, according to the report. Cement capacity additions are likely to expand to roughly 29-32 MTPA in FY2023 from around 25 MTPA in FY2022, owing to solid demand prospects. In FY2023, the eastern area is predicted to dominate the increase, adding over 16-17 MTPA, followed by the central region, which will add roughly 6-7 MTPA. Despite an estimated increase in volumes of 7-8 per cent, capacity utilisation in the cement sector is expected to remain moderate at approximately 68 per cent on an expanded base.

Next Story
Real Estate

Kerala HC Orders Demolition, Reconstruction of Chanderkunj Army Towers

The Kerala High Court has ordered the demolition and reconstruction of Towers B and C of the Chanderkunj Army Towers at Silver Sand Island, Vyttila, citing severe structural distress. The verdict follows a prolonged legal battle over the poor quality of construction, despite the Army Welfare Housing Organisation (AWHO) arguing for retrofitting instead of demolition. Justice CP Mohammed Nias ruled that the demolition was necessary to prevent casualties and safeguard residents. The court directed the district collector to form a committee comprising an experienced structural engineer, two r..

Next Story
Infrastructure Urban

Nitish Kumar Unveils Rs 13.28 Billion Projects in Bhagalpur

Chief Minister Nitish Kumar inaugurated 146 development projects worth Rs 13.28 billion during his ‘Pragati Yatra’, urging officials to accelerate the region’s progress. The projects span multiple sectors, including 18 smart city initiatives, six schemes for the building department, 32 for rural development, and several others covering road construction, health, and SC/ST welfare. Additionally, Kumar laid the foundation stone for 63 new projects, with 35 dedicated to rural development. During his visit, he launched key initiatives at Bihar Agricultural University in Sabour, inc..

Next Story
Infrastructure Transport

Indian Railways Upgrades 23,000 Track Kilometres for 130 kmph Speed

Indian Railways has upgraded over 23,000 track kilometres (TKM) to support speeds of up to 130 kmph, marking a significant milestone in its modernisation efforts. This initiative enhances connectivity, reduces travel time, and strengthens safety measures through advanced signalling and fencing systems. Key sections of the Golden Quadrilateral and Golden Diagonal networks—critical corridors linking major cities—are now equipped for higher speeds, improving passenger and freight movement. Additionally, 54,337 TKM of tracks have been upgraded for speeds up to 110 kmph, further boosting n..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?