Cement Sector Check - Awaits Price Hike: IDBI Capital
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IDBI Capital Report
Our interaction with cement dealers across India suggests that average cement price at an all India level is down 1.5% month-on-month in October 2021. Price decrease is seen across all the regions.
In base case scenario we are modeling cement price increase in H2 as costs have increased sharply.
Cost continues to move up with imported coal price up 45% month-on-month in Oct-21. Imported coal price is up 150% since March 2021.
Freight cost index is up 1% month-on-month in Sep-21 and its up 4% since March-21.
Cement production in India for the month of Aug-21 has increased by 36.3% YoY at 28.5 million tonne. Demand has been strong.
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