And The Indian Cement Industry Outlook Series
Capacity utilization at cement companies has improved significantly in May after a sharp drop in April with some cement companies reporting upto 80% drop in capacity utilization.
While cement production halted in March-April owing to the nation-wide lockdown and the steps taken by the government to control the Covid-19 pandemic, production commenced in May in some of the cement plants after getting approvals from the respective state governments.
Easing of logistical hurdles and improved workers’ availability have helped cement companies move production levels upward in May and is expected to go up further in June in the expectation of more relaxations to the lockdown.
According to the Indian cement industry, the IHB segment ( individual house builders ) which drives 55 per cent of the annual national demand, has been looking up after construction activities were permitted by various state governments.
Government infrastructure projects expected to be the catalyst to kickstart the economy post Covid-19, will create a huge demand for Cement, which in turn is expected to ramp up Cement capacity utilization to pre-covid19 levels.
