India's cement industry maintained good development in 2018

1.   Cement production

      After entering 2018, India's cement industry has maintained a good development trend. In March 2018 alone, India's monthly cement output reached 28.47 million tons, an increase of 12.93% over the same period last year. In March 2017 and 2016, the monthly cement output was 25.21 million tons and 27.05 million tons, respectively.

      India's cumulative cement output in the first quarter of this year has reached 81.74 million tons. According to this trend, the annual cement output is expected to be around 326 million tons, and the annual output plan of 300 million tons formulated at the beginning of this year will be successfully completed. However, the traditional monsoon season in India is approaching, which may affect cement production in the future, and it remains to be seen whether the annual cement production can meet expectations.

2. Cement price

      Cement prices in some parts of India (Andhra Pradesh and Telangana) have also risen since April as the cost of cement production has increased. However, industry insiders pointed out that the rise in cement prices will not affect the progress of government construction projects, and related cement enterprises will not start from the ground.

      Ravinder Reddy, marketing director of Bharathi Cement, said that the price of their cement will increase by 0.3 to 0.46 US dollars per bag, which may change with the market, but will never exceed 0.46 US dollars per bag, and the price increase of cement is also due to the helplessness of coal, fuel and other raw materials.

      Hyderabad property developers, however, disagree, claiming that the price of cement has risen by more than $1 per bag from $4.27 to $5.33. They claimed that the cement companies in the two States had formed a monopoly on the cement industry, thus raising the price of cement.

      And an analyst at Niraml Bang Institutional Equities, an Indian economics firm, points out that a recent increase in import duties from 2.5% to 10% will raise the cost of using tar by around 6%. In India, stone tar is an important combustion material in cement production.