Anand Rathi: Cement Channel Check - Minor Price Corrections; Eyes On Post-Diwali Demand Pick-Up
A builder carries a bowl of cement during construction. (Photographer: Prashanth Vishwanathan/Bloomberg)

Anand Rathi: Cement Channel Check - Minor Price Corrections; Eyes On Post-Diwali Demand Pick-Up

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

Shrinking cement prices and demand continued in the rain-hit month, August, a normal trend. Further, rising Covid-19 cases, unavailable labour and partial lockdowns persisted.

Our channel checks show most regions except East maintained high cement price level (Rs 340-350/bag) with a fall of approximately Rs 10/bag whereas in East, prices fell by Rs 20/bag.

Some prices in cities, however, rose, especially in the West (Surat). The Index of Industrial Production (IIP) data show July 2020 industry volume was down 13.7% YoY.

Further, our channel check show demand slumped 10-35% in August 2020.

Dealers expect demand to rise post Diwali (returning labour on the monsoon behind and construction sites restarting).

Click on the attachment to read the full report:

Anand Rathi - Cement Sector Update.pdf

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