Cement Sector Check - Price Recovery Key For Margin Sustenance: ICICI Securities

Workers stand in a hangar containing raw materials at a cement factory. (Photographer: Dario Pignatelli/Bloomberg)

Cement Sector Check - Price Recovery Key For Margin Sustenance: ICICI Securities

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.

ICICI Securities Report

Our channel checks suggest industry likely saw strong volume growth in excess of mid-teens YoY aided by relatively weak monsoon spell especially in North and West regions during August 2021.

South also likely saw strong growth on a YoY basis owing to low base, while East seems to have declined YoY due to heavy monsoon.

Industry likely operated at ~68% utilisation with ~28 million tonne volumes implying two year compound annual growth rate of ~6%.

Average pan-India prices in Aug-21 fell ~3% month-on-month led by sharp 6-7% month-on-month price fall in East, 3% month-on-month fall in South and 1-2% fall in the rest of India.

However, on a YoY basis, prices are still up 2-4% across most markets except South.

Click on the attachment to read the full report:

ICICI Securities Cement Monthly Update August.pdf

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