OfBusiness Cement Dailies | 8th November 2023

Price

• Cement prices remain stable, and a revision is possible after Diwali, according to industry participants.
• AAC Block prices are as follows: Ex Panipat: Rs 2,500/cubic meter and Ex Nashik: Rs 3,300/cubic meter GST will be additional.

Demand and Supply

• Supply in the western and southern regions is on schedule, with a nominal lead time of 36 hours. However, supply in the northcentral region is delayed by 24 hours.
• Demand has reached a stable state PAN India and is expected to remain this way until Diwali.

News

• Q2 Result Preview – Helped by strong Cement demand, Shree Cement’s Q2 sales volume may reach 8.4 million tons, a 12% year-over-year increase. Coupled with improved realizations and lower costs, EBITDA per ton may be at Rs 1046, a 49.1% year-on-year rise, as per media reports.
• The Vedanta Group company, Talwandi Sabo Power Plant (TSPL), plans to set up Cement manufacturing plants in Punjab with an overall investment of around Rs 10,000 crore. TSPL intends to establish multiple Cement plants adjacent to its existing power plant in the Mansa district of Punjab, with one of these plants being set up by the JSW Group. However, the Cement project, which has the potential to generate over 2,000 jobs for Punjab, has been awaiting approvals from the Punjab Government’s Office of the Chief Town Planner and Director of Factories for the last 18 months.

OFB’s Opinion

• Cement prices are expected to remain firm until Diwali. There is a chance that rates will be increased afterward, up to Rs 20.
• Planning and scheduling are necessary for the northcentral regions due to supply delays, especially with the OPC43/53 bulkers.