Cement Stocks Outlook for the week – 10 to 14.04.2017
Cement Stocks Outlook for the week – 10 to 14.04.2017
Stocks of cement companies are seen rising next week because of the price hikes undertaken this week. Cogencis had reported on Thursday that cement makers have increased prices by 15-60 rupees per 50-kg bags in different parts across the country. While the increase in prices in southern states was because of the on going truck strike that has hit supply, dealers in Delhi-National Capital Region attributed the hike to steady recovery in demand. Demand for cement was hit by the government's decision to demonetize old 500- and 1,000-rupee currency notes from Nov 9, in order to curb black money. Cement companies had reduced prices after demonetisation in order to revive demand and maintain market share. However, demand has started improving since mid-January as remonetisation gathers pace. This has given cement companies room to increase prices. Demand has improved and is expected to increase further. Smart cities, affordable housing, and irrigation projects will gather pace ahead and will boost demand. However, the drought in southern states may affect demand there. Tamil Nadu, Andhra Pradesh, and Karnataka are facing water crisis and the situation is likely to worsen in the coming months.
Source : Cogencis Information Services Ltd.
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Cement Stocks Outlook for the week – 10 to 14.04.2017
Stocks of cement companies are seen rising next week because of the price hikes undertaken this week. Cogencis had reported on Thursday that cement makers have increased prices by 15-60 rupees per 50-kg bags in different parts across the country. While the increase in prices in southern states was because of the on going truck strike that has hit supply, dealers in Delhi-National Capital Region attributed the hike to steady recovery in demand. Demand for cement was hit by the government's decision to demonetize old 500- and 1,000-rupee currency notes from Nov 9, in order to curb black money. Cement companies had reduced prices after demonetisation in order to revive demand and maintain market share. However, demand has started improving since mid-January as remonetisation gathers pace. This has given cement companies room to increase prices. Demand has improved and is expected to increase further. Smart cities, affordable housing, and irrigation projects will gather pace ahead and will boost demand. However, the drought in southern states may affect demand there. Tamil Nadu, Andhra Pradesh, and Karnataka are facing water crisis and the situation is likely to worsen in the coming months.
Source : Cogencis Information Services Ltd.