Cement Sector Check - Prices Holding Up: IDBI Capital

Laborers unload cement bags from freight trains at the Shakur Basti station in New Delhi, India (Photographer: Prashanth Vishwanathan/Bloomberg)

Cement Sector Check - Prices Holding Up: IDBI Capital

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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, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Our interaction with cement dealers across India suggests that average cement price at an all India level has been flat month-on-month in August 2021.

Cement price has remained steady versus our expectation of weakness led by the monsoon.

Recall in Q1 FY22 average cement price is up 6% QoQ and in Q2 FY22 so far all India average cement prices are flat QoQ.

Cost continues to move northward with imported coal price up 9% month-on-month in August-21 and Q2 FY22 (till August) imported coal prices are up 34% QoQ.

Freight cost index is up 2% month-on-month in July-21.

Cement production in India for the month of June-21 has increased by 4.3% YoY at 27.6 million tonne. Low base has led to volume growth.

Click on the attachment to read the full report:

IDBI Capital Cement Sector Update.pdf

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