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CARE Ratings Research Report
Cement production fell by 5.9% during January 2021 compared with 7.2% decline witness during December 2020 and 5.1% increase during January 2020.
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Fall in production could indicate waning pent-up demand and normalising of operations in the infrastructure space. Usually cement production is high during Q4 as construction activities are at its peak.
Cement demand is closely linked to the overall economic growth, particularly of the housing and infrastructure sector.
Increasing demand from affordable housing and construction work for other government infrastructure projects like roads, metros, airports, irrigation etc. are demand drivers which support cement demand.
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