With 30% lesser off take of 430 million tonnes of cement last year, due to slowdown in construction industry in the country, a similar trend is likely to continue this year as well, a top J K Cements official said.
Reports of similar pattern of consumption in the first five months of this fiscal from construction industry coming, there will be only 70% of off take of grey cement, the company Administrator (AYA) and Advisor, M P Rawal told reporters.
The cement industry does not want to take risk and nearly 130 tonnes of cement went either unsold or unutilised, he said adding the production this year will also be reduced drastically considering the lesser demand.
Stating that the company was not selling its grey cement to Tamil Nadu in view of high transportation cost, Rawal said that there was no proposal to set up a plant in this part of the country, fearing the availability of raw materials like lime stone.
On ever increasing prices and cartel reportedly being formed by a few cement manufacturers, Rawal said, “First of all this is a competitive industry and nobody trusts each other.. In this situation there is no truth in forming cartel to increase the prices.”
The changing government policies also have a major impact on the prices and even economic predictors have failed to come out with the price pattern, he said.
(Source: www.economictimes.indiatimes.com)
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