Cement Sector Update - Demand To See Sharp Bounce Back: ICICI Securities
Workers load sacks of cement onto trucks in Bihar.(Photographer: Anindito Mukherjee/Bloomberg)

Cement Sector Update - Demand To See Sharp Bounce Back: ICICI Securities

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ICICI Securities Report

Our channel checks suggest demand in May 2021 likely declined in low double digit month-on-month owing to localised lockdowns, with improvement seen during the second half of May 2021.

On a YoY basis, May 2021 volumes saw low double-digit growth aided by low base.

Industry operated at ~65% utilisation (27 million tonne) with exit-May-21 utilisation crossing 75% and getting back to pre-Covid-19 utilisation, in-line with seasonality.

With receding Covid-19 cases and possible gradual relaxation in lockdowns, construction activities may gain momentum in June-21 before monsoon sets in.

Click on the attachment to read the full report:

ICICI Securities Cement Monthly Update.pdf

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