Cement production likely to grow by 5-7% in FY20
Cement production in the country is likely to remain steady with total production expected to grow by 5-7 per cent during FY20. Roads, urban infrastructure and commercial real estate are seen as the key demand drivers for cement.
During 2018-19, cement production grew by 13.3 per cent to 337.3 million tonne (mt) against 6.3 per cent growth in FY18, the fastest growth in production of cement recorded in one single year over the last decade.
“Southern and eastern regions would continue to be the major regional demand drivers. Prices are expected to remain stable. Retail segment demand would be the key to strengthening of cement prices. Eastern region may witness strengthening of cement prices followed by western and central region”, according to a report of Care Ratings titled “Manufacturing & Service Industries: Review FY19 & Outlook FY20.”
Destruction due to cyclone Fani is also expected to drive demand in the coastal region of eastern states namely Odisha and West Bengal in Q1FY20, the report added.