Cement Channel Check - Sustaining Price Hikes Remains The Prime Issue: Anand Rathi

Anand Rathi Report

We hosted a multitude of cement dealers from places and regions such as Hyderabad, Bengaluru, Kolkata, Patna and Vidarbha with respect to assessing the demand and pricing environment. While healthy demand in most regions persists, sustaining price hikes remains the prime issue due to huge supplies and market-share wars. Key takeaways from the conference-

South- In the south, cement companies announced a price hike of Rs 40-50 a bag. Dealers, however, believe only Rs 10-15 would hold. Rural demand in Hyderabad has grown 25%, while commercial and residential demand in Bengaluru remained firm.

East- In the east, cement prices have been hiked by Rs 10-15 a bag. Low consumption, however, due to the coming West Bengal new year and the Id festival, according to dealers, would make it difficult for even such prices to sustain.

West- In Mumbai, demand has been strong, and companies are attempting to hike prices by Rs 20-25 a bag. Such prices holding up, however, is the key. In Surat, of the Rs 10 a bag hike, only Rs 5 could be sustained.

North- In the north, cement prices were raised by Rs 10 a bag. Demand in March was lower than in January/February, curtailed by labour unavailable because of the festivals (Holi/Ramzan) and the marriage season. Demand is expected to improve if unseasonal rains do not occur.

Central- In the central region, cement companies announced a price hike of Rs 10-15 a bag. Rs 5/bag was rolled back in March in many cities due to festivals and offseason rains. Anaemic demand in the region persists due to funding issues and the absence of infrastructure projects.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime 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 BQ Prime.

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