India's Deccan Cements starts commercial operations at Line-3 plant

India's Deccan Cements has commenced commercial production at its Line-3 cement plant Dec. 15, raising the company's total cement capacity to 4 million mt/year, the producer said in a statement Dec. 16.

The Hyderabad-based producer with integrated operations primarily supplies cement to southern and western India. According to the company's website, it has been steadily increasing capacity while prioritizing operational efficiency and cost management amid fluctuating fuel and power costs.

The start-up of the new line represents a significant step in Deccan's expansion strategy, as cement producers position themselves for medium-term demand growth linked to infrastructure and housing activity, according to Asia-based traders.

Several Asia-based traders said additional capacity is likely to heighten competition within the domestic market, particularly in southern India.

Market participants noted that the expansion is expected to primarily cater to domestic demand, with limited implications for the regional seaborne clinker trade.

"Much like the recent expansion by NCL Industries in Visakhapatnam, this capacity will largely serve India's internal market," a Southeast Asia-based trader said. "It is unlikely to have any meaningful impact on the main Bangladesh–Vietnam trade corridor."

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $36.5/mt on Dec. 11, unchanged from the previous week. Platts also assessed cement clinker FOB Vietnam at $31.5/mt on Dec. 11, up from $31/mt FOB the previous week.