ACC expects demand growth for cement
Cement company ACC has stated that India's cement demand is likely to grow at a rate of 10 per cent in 2012, but subdued capacity utilisation and costlier raw materials will keep prices under pressure.
The company's annual report said that the demand for cement was expected to grow at 10 per cent over 2011. A lower utilisation rate coupled with increase in cost of raw materials and increasing logistics costs are likely to keep overall prices under pressure in all regions, it said.
India's cement sector saw a demand growth of around six per cent in 2011 over 2010. ACC's slaes, however, grew by 11.5 per cent during the year at 23.73 million tonne. Poor demand led to the industry's capacity utilisation falling below 80 per cent in 2011.
With an addition of 30 mtpa fresh capacity during 2011, India's total installed capacity of cement stood at 320 million tonne per annum (mtpa). Around 25 mtpa new capacity is set to be added in 2012.
ACC said as the the availability of linkage coal is gradually dwindling, the company is trying to mitigate its fuel risk by enhanced usage of alternative fuels and optimisation of coal mix.