Displaying items by tag: Freight
India: South Central Railway has signed a long-term tariff contract with Ramco Cements and Zuari Cements to transport freight at fixed rates. Ramco and Zuari have signed agreements for five and three years respectively. The railway company has previously signed similar deals with UltraTech Cement, India Cements, Orient Cements and Kesoram Industries.
Rising energy costs to hit Indian cement producers profits
04 January 2018India: The credit agency ICRA forecasts that rising energy and freight costs due to higher pet coke, coal and diesel prices during the first half of 2017 – 2018 financial year may hit the profits of cement producers. Petcoke prices grew by 32% year-on-year in the first half of the year and coal prices rose by 44%, according to the Press Trust of India. Sabyasachi Majumdar, an analyst at ICRA, said that higher power, fuel and freight costs were likely to continue. He added that the ability of cement companies to raise their prices was crucial to maintaining profit levels.
Cement manufacturing cost to increase by US$0.11 – 0.16/bag
27 February 2015India: The manufacturing cost for cement is likely to go up by US$0.11 – 0.16/bag due to the proposed freight hike on various inputs and the cement itself. "The cost of production will go up in the range between US$0.11 – 0.16/bag," said a cement company spokesperson. He added that cement producers would most likely pass on the costs to their customers.
The Railway Budget proposals plan to increase freight rates of coal and slag, used in the manufacturing of cement, by US$0.74/t and by US$0.34/t respectively. A hike in cement freight rates of US$0.34/t has also been proposed, however, a reduced freight on limestone, by US$0.04/t, is also in the proposal.
"The freight rate hike is likely to increase our cost of production in the range between US$0.03 – 0.06/t. However, price is determined by demand and supply," said Mahendra Singhi, whole-time director of Dalmia Bharat Cement. Jaypee Cement's whole-time director Shiva Dixit said that although the freight rate hike would have an impact on input prices, they would wait for the main Budget to see the cost implication.