The much awaited demand for domestic cement manufacturers has been finally fulfilled when the Indian Government reimposed to CVD (counter veiling duty) and special CVD on imported cement. The poor demand scenario coupled with duty free imports and exports of cement banned had significantly impacted the domestic cement manufacturers especially in the North with prices falling and inventories being pilled up. Mr. H. M. Bangur president of the Cement Manufacturer’s Association and Managing Director, Shree Cement said “ We welcome the move as cement industry’s long pending demand has been met” Since last April, margins of Indian cement companies were hit. This was when imported cement began coming in the country at a cheaper price. Now imported cement would attract CVD/SAD. This will reduce the attractiveness of imported cement said an analyst with domestic brokerage firm. The CVD today is Rs. 408 per tonne while Special Additional Duty (SAD) is at 4%. Hence, the low cost inferior cement from Pakistan will no longer be cheaper. Mr. Bangur added the landed cost of imported cement from Pakistan works out to around Rs. 145 per bag. In Pakistan, there is already about 7-8 million tones per annum of over supply. Some of this was imported by India from companies like Lucky Cement and DG Khan Cement.

Article From : Cement Review : March 4, 2009