Indiaisexperiencingaseverecoalscarcity,whichisamajorfactorinthecountry's risingcementprices.About25tonnesofcoalareneededtoproduce100tonnesof cement,whichaccountsfor20%ofthecement'sprice.Consequently,thepriceof cementhasbeendirectlyimpactedbythepriceyimportofcoalorpetcoke.
CementmanufacturersarealreadyimportingVenezuelanpetcoke,anexpensivebut effectivecoalalternative,duetotheRussia Ukraineissue.Petcokeisbeing importedinsignificantquantitiesbyIndianbusinessesfromVenezuelaforusein thepowersector.
CementcostaboutRs200per50kgbagpriortotheepidemic,butnowcostsaboutRs350 forthesameamount.TheconflictbetweenRussiaandUkraine,thelackofcoal,andthe depreciatingvalueoftherupeearethethreemaincausesoftherisingcost.
List of 2022 cement prices in India
India'srecoveringrealestatemarkethassufferedyetanothersetbackasaresultofthe ongoingincreaseinthecostofrawmaterialslikesteelandcement.Numerouslocaland globalinfluenceshaveinfluencedthegrowth.Analysisofthecauses,effects,andpotential futuresofIndia'srisingcementprices.Theinexpensiveandmiddle incomeresidential estatecategorieshavebeensignificantlyimpactedbyIndia'srisingcementprices.Although thepricehasvaried,thegeneraltendencyhasbeenupward.InIndia,thecumulative increaseincementpricessincetheepidemiclockdownsiscurrentlybetween60and70 percent. Are you searching for 2bhk flats in Santacruz?
Price list for cement in India in 2022
ThemosttypicaltypeofcementusedinrealestateactivitiesiscalledOrdinaryPortland Cement(OPC).ThreegradesofthiscementareavailableontheIndianmarket:Grade33 (IS:269),Grade43(IS:8112),andGrade53.(IS:12269). InGrade33,M20GradeConcreteisutilised,whichisnecessaryforplastering.Grade43is neededforprecast,flooring,andplastering.Ahigherconcretegrade,grade53,isutilisedto buildmulti storystructures,roadways,andbridges.
In2022,thevalueoftheIndianrupeefellbyasmuchas5%comparedtotheUS dollar.Asaresult,cementproducershavetodigdeepintotheirbudgetstopayfor importsfromallovertheworld.
Effect of rising cement prices in India IntheYearonYear(YoY)analysis,cementconsumptioninIndiahascontinuously increased.AccordingtoStatista,therewasanincreaseincementuseofalmost30million metrictonnesinFY2022comparedtoFY2021.Additionally,anincreasefrom328million metrictonnesto379millionmetrictonnesmaybeseenwhencomparingthepre COVID periodtothecurrentcementdemand.Theincreasingdemandforrealestatehasmadeit difficulttomaintainabalancebetweenthesupplyanddemandforhomesduetotherising pricesofrawmaterials. Thecurrentstateofthebuildingbusinessisunusual.Marketleadersareworkingat65to 75percentcapacity,despitethefactthatvolumeshaveclimbedinrecentquarters.Thishas beenasignificantroleintheunderwhelmingfinancialperformanceofbusinessesoverthe pasttwotothreequarters.Inadditiontocausingprojectdelays,India'srisingcement priceshaveboostedbuildingcostsoverallbyabout30to40percent.
ThecostofGrade42OPCcementinIndiaislistedbelow. Cement Brand Price per 50 kg bag UltraTechCement Rs330 AmbujaCement Rs330 ACCCement Rs375 BirlaCement Rs375 JKLaxmiCement Rs390 DalmiaCement Rs410 JaypeeCement Rs390 ShreeCement Rs350 BangerCement Rs380 CoromandelCement Rs370 PriyaCement Rs270 RamcoCement Rs410 HathiCement Rs385 SanghiCement Rs365
A rise in the cost of real estate
The viewpoint of the developer
Bangalorehada6%increaseinhousingcosts,Mumbaisawa4%increase,andPune sawa3%increase.
TherealestatemarketsinHyderabadandAhmedabadexperiencedthebiggest growthin2021,at7%apiece.
Theimpactonthecheapandmid segmentrealestatemarketsisduetothedevelopers' decisiontostartshiftingthecosttoendusersinanefforttobalancethesituation.
ThetopeightcitiesinIndiahaveseena3 7%increaseinpropertyvalues,accordingto reportsfromAustralia'sREAGroup.Thepriceofrealestatehasincreasedasaresultof risingrawmaterialcosts.ThefollowinginformationissuggestedbythereportonIndia's upscalehousingmarkets:
Thepriceofrealestateincreasedby5%inChennai,Kolkata,andDelhiNCR.
CREDAIreportsthatthepriceincreasehascompelleddeveloperstoputoffthe procurementofrawmaterialswhiletheywaitforthemarkettosettle.Asaresult,delivery ofongoingprojectsmaybedelayed.Deliveringprojectsontimeandwithinbudgetare difficultforbuilders.Inadditiontoasignificantincreaseinthecostofsteelandcement, constructioncostshaveclimbedbyalmost35%.
ThegovernmenthasbeeninformedbytheConfederationofRealEstateDevelopers' AssociationsofIndia(CREDAI)thattheremaybeadelayinbuildingduetothesharp increaseinthecostofrawmaterials.Adecisionlikethatmightputevenmorepressureon already delayeddeadlines.
Realtorsarehesitanttosignnewagreements.Thehousing&infrastructuredevelopment industriesareunderalotofstrainbecausemostareoperatingonrazor thinmargins.
Expertsestimatethatnewcontractscouldcost15 25%higher.Inputcostshaveincreased by25 30%asaresultofretailinflationreachinganeight yearhighof7.79percentinApril 2022duetotheconflictbetweenUkraineandRussia.
Effect on infrastructure development projects
OfficialsfromtheMinistriesofHousingandUrbanAffairsandRoadTransport&Highways claimthatcontractorsarerevisingprojectcostsasaresultofpricingincreases.
Therealestateindustryaswellasgovernment fundedinfrastructureprojectslike highwaysandrailroadswouldbeimpactedbythedramaticincreaseinrawmaterialprices, whichalsoincludescement.
Government initiatives to lighten the load
Adecreaseinthecustomstaxonintermediates&rawmaterials,aswellasasharp reductionintheexcisedutyonfuelbyRs8perlitre&dieselbyRs6perlitre,areall expectedtomitigatetheimpactofrisingcementprices.IndustrygroupslikeNAREDCO& CREDAIhaveapplaudedtheCenter'seffortstolowerthecostofsteelandcement.Tosolve theissue,though,morestepsinthatdirectionareneeded.
Tolowertheoverallcostofbuilding,theCentralGovernmentdisclosedanumberofprice reductionsonvariousrawmaterials.TheimpactoftheRussia Ukrainecrisisisanticipated tobelessenedbydutyreductionstolowercostsforsteel,iron,plastic,andcoal.
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