Cement Channel Check - Prices Bounce Back, More Hikes Likely: Nirmal Bang
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Nirmal Bang Report
We interacted with cement dealers across the country to gauge demand and pricing trends. While demand is still not back to normal, dealer feedback suggests that cement prices are likely to firm up further.
Previous attempt of cement companies to increase prices in October 2021 did not last long and lower demand pushed cement prices further in subsequent months of November and December 2021. The price hikes are required to pass on the increased cost pressures as imported coal/petcoke and diesel prices are still elevated.
Key concern is that cement demand has not picked up substantially as rural demand has remained subdued due to harvesting season and unavailability of labours in various regions. Shortage of funds in infrastructure sector in select regions also affected non-trade demand.
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