High input costs to prevent cement plants from cutting prices, Real Estate News, ET RealEstate

NEW DELHI: High input costs are likely to prevent cement factories from reducing their prices. However, the seasonal weakness in the coming second quarter could make it difficult to maintain prices.

“Cement achievements grew an average of 2% year-on-year in FY21 on a pan-Indian basis, while prices were highest in the south with a 9-16% year-on-year increase.” said India Ratings and Research (Ind-Ra).

“Despite higher demand, the Eastern region has seen a decline in achievements with the influx of supplies. Ind-Ra believes that achievements at 1QFY22 have been sequentially higher despite the impact of the second wave. “

According to the report, price increases were recorded in most regions in June 2021, although reports indicate a partial pullback in many pockets except the North.

Further, the rating agency stressed that with a gradual easing of closures and pent-up demand ahead of the monsoon, June is expected to have seen sequential growth of around 20% despite the rains affecting construction in parts of the country, resulting in 35 -40% year-on-year growth in 1TFY22 on a weak basis.

“The volume of cement transported by rail saw a 22% month-on-month increase in June 2021.”

Further, he said the listed universe, which typically accounts for 75 to 80 percent of total industry volumes, reported stable volumes in FY21 despite a 30 percent year-over-year decline. in the 1st quarter of the financial year21.

“Volumes during 4QFY21 were 9% higher than 4QFY19 (the last normal 4Q), indicating significant growth, driven by strong demand for rural housing and infrastructure.”

“Capacity uses reached 89% in the fourth quarter of FY21, which, together with higher clinker use, indicates that almost all of the effective capacity was used in the quarter. . . “

About Mary Moser

Check Also

Stefon Diggs stars in Marvel commercial [WATCH]

Stefon Diggs stars in Marvel commercial [WATCH]

Buffalo Bills quarterback Josh Allen isn’t just an NFL player, he’s a celebrity. The four-year …

Leave a Reply

Your email address will not be published.