Cement, being a bulk good, is freight intensive and transporting it over long distances will prove uneconomical. Costs of most of the input materials enlarged well because of the increase in basic costs, building products list and transportation value. If you want to calculate the overall cost of cement then you can check out the cement calculator.
The major value that impacts the margins square measure –
Energy value
Freight and Handling expenses
Input material value & packaging material value.
To reduce the value, most firms study and take a look to optimize the fuel combine for the plant therefore on the scale back the energy value. Firms additionally try to scale back the transportation value by fixing plants nearer to the market they're assigned to.
Issues and challenges
Over the last number of years, the cement industry´s want has not been punctually addressed by the govt. in so far as meeting its coal demand worries because of diversion of coal to the facility sector.
From a fulfilment level of 69% of its coal demand in 2003, the satisfaction level for the cement business with the best construction services has currently touched its base at 31%. As we tend to all apprehend, cement business is as vital because of the power sector for the expansion of the economy. Therefore, irrespective of the cement sector for coal provided could adversely impact the huge infrastructure development programme of the government.
To supplement its energy desires, the cement business has been creating cooperative efforts over a previous couple of years to reinforce the usage of alternate fuels like solid municipal wastes, cut tyres, paint sludge, biomass and waste heat recovery (WHR) through co-generation once creating immense investments in method technology, however, the success rate isn't encouraging because of sure technical, regulative and policy-related constraints being encountered by the business.