Cement usage up 11% at 145 mt in 2006

Cement consumption in 2006 is estimated at 145 million tonne, a growth of about 11 per cent from 2005, which would probably be the highest thus far.

In 2005, the figure stood at 130 million tonne, which was 7.95 per cent growth compared with 2004. In 2004, the consumption had grown 8.36 per cent from the previous year.

The passing year has witnessed 2.5 per cent increase in cement consumption on the back of construction boom. There has been a continuous high demand for cement throughout the year.

"Demand remained robust with cement produced being almost fully consumed," said Hitesh Agarwal, research analyst with Angel Broking. "It is a much better growth rate compared with the earlier rates which hovered around 8 to 9 per cent," he said.

Data show that the southern region is leading with the highest consumption growth at 15.04 per cent during the period between January to November. North follows with 13.73 per cent.

The central and western regions witnessed a growth of 12 per cent and 9.6 per cent, respectively. However, the eastern region lagged behind with 5.7 per cent growth.

Though monsoon had some impact on construction, it could not subdue the prices, indicating that demand has sustained.

Till November, the country produced around 139 million tonne as against 123.6 million tonne during the same period last year, up 12.46 per cent.

This year's production is set to touch above 152 million tonne. On the export front, there is a fall of 0.2 million tonne to 8.49 million tonne during the 11-month period.