OfBusiness Cement Dailies | 4th November 2023

Price

• No change in Cement prices as of today. AAC Block, ex Panipat, is priced at Rs 2,500/cubic meter, and ex Nashik is priced at Rs 3,300/cubic meter. GST will be additional.

Demand and Supply

• The delay in supply still exists in the northern and central regions, especially with the OPC43/53 grade in loose. Meanwhile, demand remains firm in the north-central and western regions.

News

• JK Lakshmi Cement recorded sales of US$189 million during the second quarter of the 2024 financial year, representing a 15 percent year-on-year increase. Its earnings before interest, taxation, depreciation, and amortization (EBITDA) grew by 33 percent to US$26.1 million, while its profit increased by 43 percent to US$5.4 million.
• The Competition Commission of India (CCI) has initiated a pan-India market study on the Cement sector, which is susceptible to collusion due to its structural features. Given the critical role of Cement in many vital sectors, the CCI will conduct a fact-finding exercise to develop a comprehensive understanding of the functioning of the Cement market across regions in India and its state of competition. CCI stated that some of the study’s objectives include examining market trends such as movements in Cement prices, costs, production, capacity, capacity utilization, and profitability. The study will also analyze the evolving market structure of the sector and pricing in both trade and non-trade segments, among other issues.

OFB’s Opinion

• It is advisable to maintain inventory for two to three days as per site requirements, and scheduling dispatches while considering the buffer time would be beneficial.