Cement Sector Check - Prices Rise QoQ Despite Softness In November: 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..Motilal Oswal Report.Our channel checks suggest that all-India average cement price declined ~2% month-on-month (Rs 7 per 50 kg bag) in November 2023, due to price declines across regions, except in the West. However, we note that average price in Q3 to-date is higher by ~5%, led by hikes in September-October 2023. Cement demand was also subdued during the month due to festive holidays, labor unavailability, implementation of pollution control curbs and elections in some states.Regionally, a sharper price decline was seen in the East (down 4% month-on-month), followed by the Central (down 3%), the South (down 2%), and the North (down 1%).In the West, prices largely remained stable month-on-month in November-23. In the East, dealers have indicated prices may further drop in the near term due to a slow pick-up in demand and higher competitive intensity. Cement demand was subdued in Nov-23 and volume is estimated to have declined 4-5% YoY in Nov-23, partly due to a higher base of last year.We estimate industry volume to grow 6-7% YoY in Q3 FY24, likely supported by a pick-up in demand in Dec-23. Imported petcoke price has been range-bound at $125-130/tonne for the past few months. Imported coal (South African) price declined ~19% month-on-month to $108/tonne. At spot prices, consumption cost stands at Rs 1.55/Kcal (imported Petcoke) and Rs 1.60/Kcal (imported coal)..Click on the attachment to read the full report:.India State Elections - Modi Gains Momentum For 2024: Dolat Capital.DISCLAIMERThis 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.

Cement Sector Check - Prices Rise QoQ Despite Softness In November: Motilal Oswal

All-India average cement price down 2% month-on-month in November 2023, but up 5% in Q3 to-date

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Cement Sector Check - Prices Rise QoQ Despite Softness In November: Motilal Oswal

All-India average cement price down 2% month-on-month in November 2023, but up 5% in Q3 to-date

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