New Delhi [India], November 25 (ANI): The global cement market, valued at USD 405.99 billion in 2023, is projected to reach USD 423.24 billion in 2024 and USD 592.38 billion by 2032, growing at a compound annual growth rate (CAGR) of 4.3 per cent, according to the Infomerics Ratings report.
According to the World Cement Industry Outlook, global cement consumption is anticipated to rebound modestly, with growth expected to range between one per cent and two per cent.
India’s cement production volumes were impacted during the June 2024 quarter due to intense heat and slowed construction activities linked to elections.
This resulted in subdued demand, with most manufacturers reporting lower volumes except for a few major companies.
However, construction activities are expected to pick up in the September 2024 quarter, with projected cement consumption growth of 4.1 per cent.
Despite the seasonal uptick, the industry faces challenges with pricing. Cement prices remained weak in the June 2024 quarter and, despite a price hike in September, are likely to be rolled back due to continued demand weakness.
Regionally, price trends vary, with the southern region witnessing the steepest declines. Nonetheless, prices remain one to two per cent higher compared to the previous year.
Profitability in the Indian cement sector has come under pressure due to lower price realisations and increased input costs.
While sales volumes are expected to rise compared to the previous year, lower realisations are likely to constrain revenue growth. Operating profit margins contracted by 60 basis points to 14 per cent in the June 2024 quarter.
The cement industry is a key contributor to India’s infrastructure development, supported by the government’s capital expenditure allocation of Rs11.11 lakh crore for FY2024-25.
Real estate and public infrastructure projects, which account for most cement consumption, are expected to drive demand. Initiatives like the Pradhan Mantri Awas Yojana and increased spending on highway and metro projects further bolster the industry.
The cement industry in India is actively addressing its significant carbon footprint, contributing 5.8 per cent to the nation’s CO2 emissions in 2022.
Greenhouse gas emissions have been reduced to 0.56 tonnes of CO2 per tonne of cement in 2023, with a target to further reduce this to 0.35 tonnes by 2050. Initiatives such as the Low Carbon Technology Roadmap (LCTR) and the Perform, Achieve, and Trade (PAT) Scheme underscore the sector’s commitment to sustainability.
India’s cement export market shows mixed trends. Sri Lanka remains the largest importer of Indian cement, although export values have declined significantly from Rs6,998.9 million in 2015-16 to Rs2,514.7 million in 2023-24.
Rising global prices and inflation have increased import costs, creating a need for efficiency improvements and higher-value export markets.
The Indian cement industry, while poised for growth, faces critical challenges such as regional demand disparities, high GST rates, and environmental concerns.
Addressing these requires strategic cost optimization, investment in green technologies, and advocacy for tax reforms to make cement more affordable.
Government-led infrastructure projects provide a solid growth foundation, but sustained profitability will depend on regional pricing strategies and operational efficiencies. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
