In Mar ’10, all-India production and dispatch of cement rose 8.2% and 8.4% yoy, respectively. The South and West zones grew 10.1% and 8.9% yoy, respectively.
Capacity during the month increased by ~2m tons, and now stands at 246m tons. The industry has added 26.6m tons in FY10, 45% in the South. All-India capacity utilization for Mar’10 stood at 96% (102% yoy, 83% mom). At 85%, the South recorded the lowest utilization; at 103%, the North the highest.
Combined volumes of the top five for Mar ’10 rose 10.3% yoy, boosted mainly by JPA’s strong 58% yoy growth. ACC with 3.5% decline and Grasim with 4.9% growth were laggards. Outperformers in volume growth were JPA, Orient, India Cements, Madras Cements and Dalmia.
Prices in April have been stable in the North, East and West regions, rising Rs10-15 in the South and declining Rs10-15 in the Central region. Demand during Mar-Apr has picked up as normally seen at this time of year, chiefly due to an upswing in construction at government projects and in real estate. Dealers expect demand and prices to hold in the near term.
