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Market round-up: Cement volume growth of 5-6% likely in FY18

LiveMint logoLiveMint 26-09-2017 Livemint

Consumption of cement is estimated to grow from 265 million tonnes (mt) in fiscal year 2017 (FY17) to 322 mt in FY20, says a recent report by Nomura. The surge in demand will be mainly driven by strong government focus on housing and infrastructure development. Housing is the biggest driver of cement demand in India. It accounts for nearly 60-65% of total cement consumption. Overall, cement demand is likely to increase by 7-9% per annum for the aforementioned period, it added. Though the foreign brokerage firm does not rule out a short-term impact of the goods and services tax implementation in 2Q and 3Q of FY18, it expects a revival in cement demand from FY18. Nomura anticipates an overall cement volume growth of 5-6% in FY18.

Citi says get ready for an oil squeeze

Those in the oil market fearing a flood of Opec (Organization of the Petroleum Exporting Countries) supply next year will probably be better off preparing for a shortage, according to Citigroup Inc. Five countries in the group—Libya, Nigeria, Venezuela, Iran and Iraq—may already be pumping at their maximum capacity this year, Ed Morse, the bank’s global head of commodities research, said in an interview. Rather than a surge in output, there’s a risk of a market squeeze emerging as early as 2018, driven by those nations because of weaker investment in exploration and development, he said. Bloomberg

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World is reaching peak gold production

The world may have already produced the most gold in a year it ever will, according to the chairman of the World Gold Council. Production is likely to plateau at best, before slowly declining as demand rises, especially given global political risks and robust purchases by consumers in India and China, Randall Oliphant said in an interview on Monday. “It’s not clear how the whole US political system will play out,” said Oliphant, an industry veteran who’s been an executive at some of the world’s biggest gold miners. “All this uncertainty seems very fertile ground for people to get into gold.” Prices could climb to as high as $1,400 an ounce in the next 12 months, and top record highs in the “medium term”, Oliphant said at the Denver Gold Forum, the 28th annual gathering of mining executives, hedge funds, bankers and analysts that attracted about 1,100 attendees. Bloomberg

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