Indeed RakeshJi, infact bulk of the auctions of Limestone have taken place in Rajasthan over the past 10 years along with MP. My inclusion of Rajasthan in the ‘west’ part was double counting, my apologies (its there included in the North Zone)
Coming to limestone, what I also understand is that the better way to analyze it is to see organic clinker capacity addition - Listening to various calls I have understood that merely looking at grinding capacity increase may not be the right way to analyze demand supply dynamics as companies open up standalone grinding units to also improve on logistical efficiency (making clinker at one place and setting up GU near to the end market.)
And if we were to chart organic clinker capacity addition over the next 2-3 years, i dont think that number would be in excess of 5% - which means if demand were to increase by more than that number, it would effectively lead to higher clinker Utilizations, and hence, maybe some sort of mean reversion in pricing?
| Subscribe To Our Free Newsletter |
