Growth in cement demand stalled in the country: Lockdown and Corona

- Earlier, the issue of high price of cement reached the court. The report of the investigation started on this issue will come in June.

Corona infestation in the country has adversely affected various trade and industry sectors. Last year, in 2020, for most of the year, the corona and lockdowns brought business and industry to a standstill. However, a glimmer of hope had dawned at the start of the new year in 2021 and trade and industry had returned to normal as the Corona infestation subsided. However, this hope was dashed again and the recent resurgence of Corona in the country has again raised concerns in the trade and industry sector. The construction sector in the country has been hit hard by the Corona and lockdown and the demand for raw materials such as cement, which is mainly used in the sector, has also been on the rise. The use of cement and steel-iron is special in the construction sector. This time in the central government's budget also, the finance minister has made special allocation for the development of infrastructure sector in the country. However, the pace of development in the construction and infrastructure sectors in the country has slowed down due to the Corona and lockdown. Such demand has seen a setback in April after a significant increase in demand for cement in March. According to market analysts, such demand has lagged behind by 20 to 30 per cent and is unlikely to pick up in May. Progress has also come to a halt in various government infrastructure projects. As workers in the construction and infrastructure sectors are also moving to their hometowns, there is a shortage of workers in such projects.

According to sources in the Rajasthan cement sector, the demand for cement has definitely declined and such demand has lagged behind by about 15 to 20 per cent. However, the sources said that corona's rage would ease and controls such as lockdowns would ease and demand for cement would rise again soon. However, there is still no significant decline in demand for cement in rural areas of the country and overall demand has been maintained, while such demand has been particularly adversely affected in urban areas, cement market experts said. Although the demand for cement decreases in April and May after March every year, this year has seen a significant decline. The pace of construction in the housing sector in the country is now likely to slow down in the next six to eight months. Whatever few buyers come in they come for ready possession flats while such buyers are still absent in the construction of under construction. In India, meanwhile, there have been reports of higher cement prices. Recently, the market prices of cement and steel have gone up significantly. Now such price growth has slowed down. The issue of rising cement prices also reached the High Court recently. Allegations that cement makers have been colluding with Ekmak to raise prices have surfaced recently and the Madras High Court has also ordered an inquiry into the matter. The question was asked by the High Court to be investigated by the CBI. A complaint was recently filed in the Madras High Court by the Class-One Contractor Welfare Association alleging that cement producers were building cartels and raising prices. The court has asked the CBI to investigate and report on the matter by June 3.

Meanwhile, the central government is also upset over the significant rise in cement and steel prices in recent months. According to sources in the Ministry of Road Transport, a committee has been constituted to decide what can be used as an alternative to cement and steel for the construction of roads. The committee is also tasked with overseeing the adoption of such methods in other parts of the world. Meanwhile, the question will also be raised with the Prime Minister.

The country, meanwhile, saw a decline of about 3 to 4 per cent in February against the backdrop of one-sided cement demand. Cement production grew by about 4 to 5 per cent in February 2020, compared to a fall of 3 to 4 per cent in February this year. Cement production continued to decline in February after falling by 3 to 4 per cent in January this year. This year, the picture has turned upside down, with cement production generally rising in the last quarter of January, February and March of the current financial year. In the first 11 months of the current financial year, such production increased by about 1.5 per cent to 2 per cent. Earlier in the financial year 2016-17, however, the country's total cement production during this period saw a significant increase of about 15 to 18 per cent. In the cement manufacturing sector, the utilization of the total production capacity of the producers in the first 11 months of 2020-21 has been around 3 to 4 per cent while the rest of the capacity was idle.