Elections, infra boost to push cement demand
The cement production in India is expected to cross 310 million tonne during the current fiscal, with a rise of 6.5%, a marginal increase over previous fiscal’s 6.3% growth.
While the demand from housing and real estate sectors is expected to grow by around 7%, demand from infrastructure segment is expected to rise by 8-10%, said an analysis done by Care Ratings.
With two major states (Rajasthan and Madhya Pradesh) going into assembly elections followed by general elections in first and second quarters of 2019, the demand from infrastructure and construction is expected to peak in central, eastern and western region. Utilisation in cement capacity across regions is expected to improve during the year to around 67% as compared to 65% in the just ended fiscal 2018.
The prices are expected to remain range bound and may fall further with addition of new capacity especially in the southern region. All-India prices are expected to remain in the range of Rs 317 (+/- 5% per bag post GST) during the year.