OfBusiness Cement Dailies | 19th July 2023

Price

• No price changes are evident in the market as Cement companies persist with the price hike implemented last week.
• Aggregates prices: Ex Kotputli 10mm at Rs 350/ton and 20mm at Rs 450/ton.

Demand and Supply

• A positive outlook in demand has led to some difficulties in supplying to non-trade parties. New orders are being canceled due to the supply taking more than 4 days for vehicle dispatch.
• Demand and supply mismatch is observed due to rains, with low inventory at market dealers’ warehouses.

News

• The Goods and Services Tax Council will review the current 28% GST on Cement.
• Media reports suggest a potential reduction to the 18% tax band, to be considered.

OFB’s Opinion

• Lower tax rates may impact Cement companies’ overall revenue, but consumption may not see significant effects. High demand has disrupted supply, which may not improve until the monsoon.