Duraton Cement

Duraton Cement Price

Duraton Cement Share Price

Duraton Cement is manufactured by Asian Fine Cements Ltd, a technologically advanced cement manufacturing company that aspires to be a pioneer in that category. Duraton Cement, rolls out of their cement plant located in Rajpura, Punjab.It has an installed capacity of 1.50 million tons per annum (MPTA).

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Cement Price Rise

Cement Prices To Rise

According to senior officials of the Indian Cement Industry body the CMA, cement prices are expected to rise by up to 10 percent in the next six months to compensate for the increased fuel and transportation costs. In the last one year there has been a 60-70 % rise in cost of fuel.

According to the same sources, the Indian cement industry has witnessed a 14 % growth in the first half of the year ended March 2019, the first double digit growth since nearly nine fiscals ago, thereby providing an opportunity for the correction of prices which have remained stagnant in the last 6-7 years.

Cement industry insiders gave a point by point argument for the likely rise in cement prices:

1. In the last one year we have seen 60-70 percent rise in cost of fuel.
2. Cement cost and normal inflation are much more than the pricing that what the cement companies have been able to raise.
3. There is a very dire need to correct the pricing to at least recover some portion of this cement cost and inflation increase.
4. There is surplus capacity in the cement industry but no pricing power.
5. Cement companies are selling a cement bag practically at the same price that was prevailing in 2011-12.
6. Just for recovering the fuel and transportation charges, that will call for a minimum of Rs 25-30 per bag, which is about 8-10 percent increase in prices, which will bring the cement industry at the level where they were last year in terms of operating margins.

On a related note, of the 500 million tonne capacity available in the industry, only 300 MT is utilized at the moment. The health of the cement industry isn't as good as expected and a lot of units have been put on the block. It indicates the margins are not very healthy.
This is expected to  continue for a while till such time the prices are corrected. More cement companies can be expected to go for insolvency proceedings if cement prices are not corrected and unhealthy margins remain.

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Cement Prices Rise in North Cement Markets

Recent Cement Price Hikes Cheers North Cement Industry

Cement prices have risen by Rs 80 per bag of 50 kg in the past two months and may rise further in North Cement Markets. Recently, cement companies have hiked prices yet again by Rs 20 per bag of 50 kg in North India and may raise it further as demand is picking up and as logistics costs rise according to cement industry sources. Retail cement prices have increased by a total Rs 80 per bag in under two months and is now being retailed at Rs 315-320 in the Delhi-NCR area. Cement dealers say that they expect cement prices to rise by Rs 10-15 by the end of this month itself.

Although companies have cut down on the cement supplies, retail cement prices are being driven up by rising demand and logistic costs. In the Delhi-NCR area, as companies are switching to railways, dealers have to pick up deliveries from the godowns, which results in additional cost of Rs 10 per bag.

Despite the skewed demand-supply scenario, cement companies in India have been constantly adding capacity over the past decade via the brown-field route, as setting up of new cement capacity via the greenfield route becomes challenging and costly. As of late, cement sales performance region-wise differ vastly and there is a race to gain larger scale market dominance and access to better performing regional cement markets. The southern and eastern cement markets seem to perform better than their counterparts elsewhere.

The cement industry is hoping for better days to come as the government has announced a series of steps to accelerate infrastructure development especially cement-based roads. Apart from stepping up building, Prime Minister Narendra Modi has put on the fast lane the ambitious Bharat Mala project to build 5,000 km of border and coastal roads for an estimated Rs 55,000 crore. In June, the National Highways and Infrastructure Development Corporation of India (NHIDCI) had invited bids for project reports on 2,100 km stretch of roads. Transport Minister Nitin Gadkari said recently that construction of highways has gone up to 13 km per day in the last one year compared with just 3 km per day during the previous years. The target is to step it up further to 30 km per day within two years.