Cementing Growth: Challenges and Opportunities in the Global Market

The global cement market is expected to grow from USD 405.99 billion in 2023 to USD 592.38 billion by 2032, despite regional pricing challenges, demand fluctuations, and environmental concerns. India's production faced setbacks in June 2024, but government infrastructure projects offer promising growth opportunities amid evolving industry dynamics.

The global cement market is on a growth trajectory, projected to rise from USD 405.99 billion in 2023 to USD 592.38 billion by 2032, marking a CAGR of 4.3% as per Infomerics Ratings. The World Cement Industry Outlook anticipates a modest consumption rebound, with growth ranging between 1% and 2%.

India's cement production saw a downturn during the June 2024 quarter due to extreme heat and the impact of elections on construction activity, leading to decreased demand and volume. Despite this, consumption is expected to recover with a 4.1% growth in the September 2024 quarter, although pricing remains a challenge.

Regionally, prices dropped significantly, especially in the southern areas, despite being slightly higher than the previous year. Indian cement profitability has been pressured by low price realizations and increasing input costs, with operating profit margins declining by 60 basis points to 14% in June 2024. Governmental capital expenditure and infrastructure projects like the Pradhan Mantri Awas Yojana support expected demand increases.

Environmental responsibilities are shaping the industry, contributing 5.8% of India's CO2 emissions. The sector is implementing sustainability initiatives like the Low Carbon Technology Roadmap and Perform, Achieve, and Trade Scheme, aiming to reduce emissions significantly by 2050.

Amid mixed export performance, with Sri Lanka as a major importer, and challenges from inflation, India's cement industry seeks strategic efficiency improvements. Continued growth is tied to strategic pricing and operational efficiencies, reinforcing the foundational role of government-led projects in sustaining the sector's momentum. (ANI)

(With inputs from agencies.)