Outlook for the cement trade in FY22 appears sanguine as a result of authorities’s thrust in direction of infrastructure creation and improvement and it being the propeller of progress within the financial system going ahead, CARE Rankings has stated in a report.
“Budgetary allocation made in direction of roads improvement, housing and rural infrastructure is slated to result in a rise in demand for the months to come back however in the mean time the trade is riddled with the COVID-19 pandemic and points related to it. Cement manufacturing is nonetheless to fall sharply by 12%-14% throughout FY21 and capability utilization is to be round 50- 55%.
This would be the steepest ever fall in manufacturing (and capability utilisation) that the trade has ever witnessed. Manufacturing of cement has grown by 13.3% throughout FY19 and fallen by 0.8% throughout FY20. Cement manufacturing is often carefully in-line with demand which can be poised to fall throughout FY21 despite the fact that the operations are nonetheless selecting up. The trade may gain advantage with the pent up demand phenomena because the financial system has been on an unlock mode,” CARE Rankings has stated.
Demand aspect points
“Going ahead the cement trade demand is slowly enhancing from the disruption created from COVID-19 due pickup in authorities spends on infrastructure and inexpensive housing together with rising rural consumption. We consider rural demand would be the main driver for cement contemplating the monsoons have been beneficial in most a part of the nation. This might translate in an influx of money within the rural financial system which may commensurate in infrastructure creation thus augmenting cement demand,” CARE Rankings has stated.
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