As per our channel checks, cement prices are softening in North, Central and West regions with correction of INR5-25/bag compared with last month. Prices broadly remained flat in East and South. We maintain that as we approach monsoon, price correction will intensify across regions (ex-South).
May 2012 cement despatches up ~13.9% YoY
Industry despatches for May 2012 have grown 13.9% YoY to 20.25 mn tonnes. MoM, despatches are up 4.3%. Both, majors (ACC, Ambuja, UltraTech, Shree Cement and JPA) as well as non-majors have grown at a same pace of 13.9% each.
��
Region-wise summary
We surveyed 29 cities across India to get region-wise demand and price trend in both trade and non-trade categories. Key highlights are as follows:
North: Softening trend
Cement prices have declined by ~INR5-10/bag in the trade segment and by ~INR10-25/bag in non-trade in cities like Jaipur, Jalandhar, Jodhpur and Ludhiana. Owing to supply shortage, prices recovered in NCR (Delhi and Gurgaon), reversing last month’s decline (current prices flat MoM). While price in NCR and Punjab are expected to remain flat or inch up further in near term, those in Rajasthan are expected to decline by INR5-10/bag.
East: Prices remain flat
Current prices in the region have remained largely flat compared with last month. While prices recovered in Bhubaneswar, reaching last month’s levels, the onset of monsoon may result in declines going ahead. Short supply helped increase of INR10/bag in Durg and Raipur markets, while prices in Kolkata and Patna were flat. Dealers expect prices to remain flat in the near term.
South: Marginal price recovery in Hyderabad
Amidst continued shortage of sand in Andhra Pradesh, prices in Hyderabad recovered marginally by INR5/bag over last month. Increased supply in Bangalore has led to a decline of INR15-20/bag in non-trade prices even as trade prices remained flat. Prices in Chennai and Cochin remained broadly flat with some downward pressure witnessed on B and C category players.
Regards,
No comments:
Post a Comment