OfBusiness Cement Dailies | 10th November 2023

Price

• Cement prices have remained stable but are expected to be revised after the Diwali festival. AAC Block prices are Rs 2,500 per cubic meter ex Panipat and Rs 3,300 per cubic meter ex Nashik, with GST as an additional cost.

Demand and Supply

• Supply is expected to be delayed by thirty-six to forty-eight hours due to the festival week. Major sites in the northern and central regions are nearly at a halt, causing a dip in demand. However, demand is expected to pick up after Diwali.

News

• The Ramco Cements Limited (RCL) reported a standalone net profit of Rs 101 crore for the September quarter, marking a nearly nine-fold increase compared to the previous year. Revenue from operations rose to Rs 2,329 crore from Rs 1,784 crore. Raw materials costs increased by 7% year-over-year to Rs 897 per ton due to inflationary impacts on procurement costs. Sales volume grew by 38% to 4.61 million tons, with a capacity utilization rate of 82%, as stated by the leading cement manufacturer.
• A day after terminating the Rs 1,687 crore Cement Concrete (CC) road contract for South Mumbai, BMC Chief Iqbal Chahal announced that BMC would float a new short-term tender, and new work orders would be issued within three weeks.

OFB’s Opinion

• Due to the expected supply delay, it is recommended to maintain inventory for two to three days. Even after the festival week, demand is anticipated to be high, making it difficult to meet the standard lead time for delivery.