Cement output in January increased to 7.57 million tonnes from 6.94 million tonnes in the corresponding month last year. Despatches were also higher at 7.58 million tonnes up from 7.06 million tonnes in January last year. Production during April-January increased by 5.25 per cent while despatches were higher by 5.35 per cent as compared to the corresponding period last year.

Although the growth in demand is lower than last year, analysts say that a recovery may be around the corner with signs of an increased pick-up in the coming months. "Demand is growing by over 12 per cent which is an indication of revival of cement demand and if the same growth continues during the peak of construction period, the cement demand for calendar year 1999 is likely to reach 8-10 per cent, asagainst 7 per cent in 1998," said an industry spokesman.

According to data compiled by the Cement Manufacturers' Association, industry output during the first 10 months of the current fiscal scaled up to 65.37 million tonnes from 62.11 million tonnes in the same period last year, while despatches increased from 62.08 million tonnes to 65.41 million tonnes during the period.