Cement Output Up 10 Per Cent In Feb 1998

Cement production in February 98 increased by ten per cent over the same period last year. In February this year, production stood at 6.65 million tonne compared with 6.03 million tonne last year.

According to latest data released by Cement Manufact-urers Association (CMA), despatches during February grew to 6.68 million tonne, which is also close to ten per cent higher than last years figures of 6.09 million tonne.

Cement closing stocks rose by close to seven per cent, to 1.06 million tonne, from 0.99 million tonne in January 98.

The increase is, however, close to 19 per cent, when the average figures for the two months are compared.

Analysts said 1997-98 would end with a growth figure of nine per cent, which is a fall from the 9.7 per cent cumulative growth recorded till January. This is because of lower production in February compared to January. In January, production was 6.81 million tonne and despatches 6.46 million tonne.

Indias largest cement company, ACC, suffered a 14 per cent drop in production in February to 0.72 million tonne from 0.84 million tonne in January.

However, the actual drop would be five per cent if the average figures for the two months are compared. According to cement analysts, despatches from the Wadi unit in Karnataka and Kargil in Himachal Pradesh of ACC have fallen sharply. While production at Birla group companies declined to 2.027 million tonne, that at Cement Corporation of India (CCI) almost doubled to 88,477 tonne.

On the other hand, South-based companies like India Cements (ICL) and Madras Cements (MCL) have recorded an increase in output, with production figures for ICL standing at 0.26 million tonne from 0.20 million tonne. MCL recorded a production of 0.22 million tonne compared to 0.16 million tonne.

Tamil Nadu Cement increased production to 63,070 tonne from 61,081 in January.

According to analysts, despatches in the south have also gone up, with despatches by India Cements having increased to 0.27 million tonne from 0.20 tonne in January, while that from Madras Cements having reached 0.22 million tonne from 0.16 tonne in January.

However, prices in the south are expected to decline further with L&Ts plant at Tadpatri being commissioned.

The company is expected to market its total production in the southern region.

In February, prices in Chennai fell to Rs 135-150 per bag while those in Bangalore fell to Rs 142-156. Industry sources said that prices will fall further by Rs 10 to Rs 15 per bag. In the North, they had moved up to Rs 123-125 in Jaipur and Rs 126-129 in Delhi.