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Cement Channel Check - Average Prices Drop By Rs 8/bag On Subdued Demand: Systematix

Cement Channel Check - Average Prices Drop By Rs 8/bag On Subdued Demand: Systematix

<div class="paragraphs"><p>Cement bags. (Photo: Vijay Sartape: Source: BQ Prime)</p></div>
Cement bags. (Photo: Vijay Sartape: Source: BQ Prime)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

Our recent channel checks across 15 cities indicate an average all-India cement price fall of ~Rs 8/bag on month-on-month basis in August 2022.

Prices in North, East and Central regions likely fell by Rs 10-15/bag, with South and West India likely seeing flat to marginal drop in prices.

Cement companies had to roll back their attempts to increase prices at the beginning of Aug-22 due to lower demand.

We attribute our estimated 10-15% fall in average demand in Aug-22 (pan India) to sand mining-related issues and heavy rains and labour issues. However, the relatively better demand in Aug-22 versus June and July-22 was due to the drop in steel prices, and uptick in pre-monsoon demand.

Click on the attachment to read the full report:

Systematix Cement Channel Check.pdf

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