Cement Sector Check – Price Hikes, Easing Cost Pressure To Aid Improvement: Motilal Oswal


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. 

Pan-India average cement price increased by ~2% month-on-month in October 2022 led by 2-5% price increase in South, East and West markets.

Cement manufacturers have announced further price hikes of Rs15-20/bag across regions in November 2022. Absorption of these price hikes by consumers needs to be monitored.

We believe that the decline in coal/petcoke prices should help average cost reduction of at least Rs 150/tonne in Q3 FY23.

Imported coal price after remaining at an elevated level of $250-350/tonne (Richard Bay Spot prices) over March 2022-Oct-22 has declined by 19% in the last one month.

Though, petcoke prices have increased from mid-Oct-22, it remains 29% lower than Q1 FY23 average price.

Click on the attachment to read the full report:


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.


Source link

What is your reaction?

In Love
Not Sure

You may also like

Comments are closed.

More in:Business