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BL Research Bureau

The complete lifting of the ban on cement exports may not bring about a significant addition to the industry’s revenues, as the industry has already been servicing its major export markets. The move to free cement and clinker exports across regions comes at a time when the fear of supply excesses is gripping the industry.

The initial ban on cement exports came in April this year to augment domestic supply and curtail the price rise. However, within six weeks of the ban, cement exports to Nepal and shipments via Gujarat port were allowed.

Shipments from Gujarat port mainly go to West Asia and regions in Africa, the key export markets for cement from India.

Clinker exports also offer some potential for revenues. Clinker, a semi-finished form of cement, has been in demand from countries with low limestone and silica deposits. Major clinker importing nations are UAE, Qatar and Oman.

Though the cement export numbers have seen a drop in the last few months, clinker export numbers continue to display strength. Clinker exports grew by a strong 31 per cent in this April-November period, with growth in November at 11 per cent.

Cement exports in April-November fell by 30 per cent.

UltraTech Cement, which is the major clinker exporter, is the key beneficiary of this opportunity.

UltraTech’s sales volume saw a 13 per cent growth in the September quarter, seen supported by higher clinker turnover.

Export realisations grew at a stronger pace than domestic realisations. Also, the realisations on clinker, domestic and export sales put together saw a 29 per cent growth.

More Stories on : Stock Markets | Cement | Exports & Imports

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