Cement Channel Check - Prices Increased 4% QoQ In Q1; Further Increase Unlikely: Nirmal Bang

A worker holds up processed cement at a factory. (Photographer: Dario Pignatelli/Bloomberg)

Cement Channel Check - Prices Increased 4% QoQ In Q1; Further Increase Unlikely: Nirmal Bang

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

Nirmal Bang Report

Despite the second Covid-19 wave and localised lockdowns in Q1 FY22, not only the pan-India cement price was firm but it increased by 4.1% QoQ.

The price increase was witnessed in all the regions. The East region saw a sharp bounce back from lower prices at 11.5% QoQ whereas the Central region witnessed the least increase of 0.9% QoQ.

We believe this price increase was to offset the effect of lower demand (lockdown in April and May 2021) and to pass on the cost inflation.

However, we believe that further pricing uptick will take a breather now, primarily due to seasonality and also due to pressure from various customers who are opposing the price hikes.

Click on the attachment to read the full report:

Nirmal Bang Cement Sector- Channel Check -7 July 2021.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.