OfBusiness Cement Dailies | 7th July 2023

Price

• The recent price decrease has been accepted by the market due to low demand during the ongoing monsoon season.
• Aggregates prices in Kotputli are Rs 360/ton for 10mm and Rs 460/ton for 20mm.

Demand and Supply

• The market is accepting the price decrease as Cement demand is low due to heavy rains across India. With decreased demand, the supply in the market is sufficient.

News

• According to a report by ICRA, the domestic Cement industry is expected to experience a 7-8% volumetric growth in FY24, driven by increased demand from the housing and infrastructure sectors. The industry is also expected to improve its operating profits with a 14-18% YoY increase to Rs 900-950 per MT, aided by softening input costs.
• Life Insurance Corporation of India (LIC) has reduced its stake in India Cement by over 2% through open market transactions between November 2007 and July 2023. The shareholding decreased from 5.875% to 3.833% of the company’s paid-up capital. The shares were sold at an average price of Rs 191.59 per share.

OFB’s Opinion

• Low market demand supports the price decrease, and it is expected to gain more acceptance. However, as the monsoon progresses, further price declines may occur from next week.