Cement production up 12%, despatches grow 11%

Cement production up 12%, despatches grow 11%
Times of India, June 11, 2009, Page 19

Rajesh Chandramouli, TNN

CHENNAI: The new fiscal has begun on an optimistic note for the cement industry. Driven by residential and infrastructure construction, cement production and despatches maintained a higher clip in April and May.

While cement production grew by 11.9% in May 2009 to touch 166.7 lakh tonnes as against 148.9 lakh tonnes the industry produced in May 2008. Despatches grew by 10.7% at 164.5 lakh tonnes, according to CMIE data. In April, production was up by 9.9% over April 2008 and despatches increased by 10.5%for the same period.

The demand is still driven by individual houses in tier II and III cities and infrastructure projects. "The builder segment (which is constituted by developers and builders) continues to be tepid, largely because of tight liquidity conditions. But, with many developers raising funds through QIPs, liquidity situation might improve and half finished projects could get completed, thereby stoking up demand further," industry sources said.

The increased demand, has not translated into higher prices for the consumers, thankfully.

"Prices are stable. Thats probably because fresh capacities have come in the past few months. In Tamil Nadu, Madras Cements Ariyalur plant and Chettinad Cements' plant also from the same location started production. In Andhra Pradesh, Dalmia's Cuddappah plant and UltraTech's Tadapatri unit have gone on stream," Rakesh Singh, senior president (marketing), The India Cements, said. According to industry sources, cement demand in north and east is very strong and robust.

Container traffic rises 3.8% in May

Chennai: Container traffic handled by major ports is showing signs of stabilisation. There has been a moderate 3.8% rise to 538 twenty-foot equivalent units (TEU) as compared to April's 518 TEU, according to a report by Angel Broking which has collated figures of the Indian Port Association.

Experts say May data indicates that container traffic is stablising at current levels post bottoming out, in absolute terms, in January and February 2009.