Cement prices zoom in Eastern India - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Cement prices zoom in Eastern India

Feb 9, 2000

The much delayed recovery in cement prices finally seems to be happening. Cement prices in eastern India, according to reports, jumped 19% during the month of January. The other regions also showed promising signs for a better pricing environment.

The cement sector has recorded a sharp rise in volume sales since November 1999 (post monsoon). However, even though sales continued to exceed production volumes (implying lower inventory and possibly higher capacity utilisation levels) prices remained sluggish in especially the eastern and southern markets. The concern in these markets emanated from the intense competition and lower than expected infrastructure spending. The western markets however performed much better in terms of pricing environment as infrastructure spending continued to be robust.

The report that prices have jumped 19% in the eastern markets and 6% in Mumbai (western India) will bring much relief to companies. Further prices have steadied in northern markets and southern markets too are expected to post a rise in prices.

The rise in prices will go a long way in improving the profitability of companies, especially those in the eastern and western markets. The hike will also enable these companies to withstand the adverse affects of the rise in diesel prices.

The sustainability of the rise in cement prices cannot be guaranteed. This is mainly due to government's uncertain track record as regards its commitments to infrastructure spending. A delay or slowdown in infrastructure spending (remember the burgeoning fiscal deficit) could adversely affect prices. Added to this is the concern that investment activity in the manufacturing sector has remained sluggish. These factors could as yet have an adverse bearing on the cement sector.

Equitymaster requests your view! Post a comment on "Cement prices zoom in Eastern India". Click here!

  

More Views on News

Ramco Cements Q4 Profit Up 51.1% on Higher Sales & Better Cost Control (Views On News)

May 25, 2021

Here's our view on Ramco Cements latest quarterly results.

A Close Look at the Stock of JK Lakshmi Cement (Views On News)

May 21, 2021

A key highlight of the company's Q4 results was its healthy operating performance.

UltraTech Cement Q4 Results: 45% Fall in Net Profit (Views On News)

May 10, 2021

Key takeaways from Ultra Tech Cement Q4FY21 results.

What's Behind ACC's Highest-Ever Revenue in March Quarter? (Company Info)

Apr 20, 2021

Key takeaways from ACC's March quarter (Q1CY21) results.

JK CEMENT Announces Quarterly Results (3QFY21); Net Profit Up 73.2% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, JK CEMENT has posted a net profit of Rs 2 bn (up 73.2% YoY). Sales on the other hand came in at Rs 18 bn (up 25.3% YoY). Read on for a complete analysis of JK CEMENT's quarterly results.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

COMPARE COMPANY

MARKET STATS