Cement demand and rising prices in the country: However, signs of a third wave of Corona have also raised concerns.

- Cement withdrawals from infrastructure sector increase: Prices rise in South India

Corona infestation has been rampant in the country and overseas for the last one and a half years and this has had a negative impact on various businesses and industries. A ray of hope appears as soon as the news comes that Corona's cases are on the rise again! As a result, lockdowns have been imposed on Wednesdays and in such an environment, especially the construction sector has been hit hard during this period. Work and progress in various construction projects in the residential and commercial sectors have stalled. The pace of work has slowed.

The slowdown in the construction sector has had an impact on the cement market and the industry in recent times. However, with the government increasing the allocation of funds in the infrastructure sector in the country, the demand for cement from such large-scale infrastructure projects has remained low to some extent. This was stated by market experts. At the beginning of 2021, the situation was as if the Corona had come under control and in the meanwhile the controls of the lockdown started easing from January-February and the construction sector also increased during that time.

However, with the onset of Corona infestation in March and the onset of the second wave of Covid, the lockdown was revived and the construction cycle slowed down again. As a result, demand in the cement market also fluctuated. Now that the second wave of corona has eased and it seemed that the trade-industry movement will resume as usual, there are indications that the cement market has returned to normal with the onset of the third wave. Now the market is keeping an eye on how the third wave is coming up and how the vaccination is progressing in the country. Experts are predicting that the effects of the third wave will be milder if vaccination progresses faster.

Meanwhile, June saw an increase in demand for cement in various states and cities of the country, according to recent news from the cement market. According to a recent survey of cement dealers' channels, cement prices have risen by an average of about four per cent across the country, with indications that such average prices have risen to around Rs 5 to Rs 20 per 20 kg.

Cement prices have risen by an average of four per cent month-on-month, but in the South Indian cement market, prices have risen by about 10 to 11 per cent month-on-month and in the southern markets, cement prices have risen by more than Rs 200 per quintal to Rs 310 per quintal. Market experts also said that around 50 were spoken. Rising demand has pushed up prices. However, with the threat of a third wave of Corona looming, how long will such demand growth last? The market is keeping an eye on it. Experts also fear that the rising demand in the cement market will be short-lived again if the third wave spreads.

Much of the recent growth in demand for cement has come from various government infrastructure projects. In addition to schools, roads, affordable housing projects, reopening in small and large towns has recently shown signs of increasing demand for cement. However, the recent strengthening of demand and prices of cement has posed a new challenge to the cement sector producers instead of providing relief. Prices of various raw materials used in the production of cement have gone up and this has led to an increase in production costs, which has raised concerns among producers.

Petroleum coke (pet coke) and coal prices are in the industry. Petcock prices have risen by 15 to 18 per cent. Coal prices have also risen by 15 to 18 per cent. Rising petrol and diesel prices have also pushed up the cost of transporting goods. Cement producers have also had to raise prices in March. Meanwhile, the onset of monsoon in the country is now expected to affect cement demand.

Generally, the demand and market price of cement fluctuates between June and September. However, this year's lockdown is expected to continue in the post-relief period. However, Corona's third wave is still on the rise. Meanwhile, cement production in the country also grew by 3 to 4 per cent in May, according to the latest figures released by the government on the growth of the core sector. Cement manufacturers have also seen price hikes on Wednesday. Cement producers also hiked prices in April and May after March, market sources said.

The all-India average price of blended cement has gone up by 3 to 4 per cent. However, experts estimate that the demand for cement will grow by 10 per cent year-on-year in the financial year 2021-2. Meanwhile, the country has also started the process of extending the mining lease in the cement sector. In such an environment, the issue of environmental protection has also come to the fore.