Cement
Stocks Outlook for the week – 08 to 12.12.2014
( www.rupeedesk.in )
Stocks of major
cement companies are seen trading with a positive bias next week as sales
volumes have increased
despite prices remaining low. Several companies reported strong sales
volume growth of
around 8-30% for November across regions on a low base of last year.
The main demand
driver is still rural and semi-urban housing and not infrastructure and
construction sectors,
which contribute the major share. The Core industry data showed a 1% on year de-growth
in cement output for October.
Improvement in
November dispatch growth is a positive surprise. But delay in on-ground pick
up in construction
activities may reinstate pricing volatility at intervals. The cement prices
have
been on a downtrend
over the last couple of months, despite intermittent efforts of price hikes.
Since October, cement
prices in the north and central regions have declined by 10-20 rupees per
bag. In the east,
there has been a net decline of 4-5 rupees per bag, while in the west, price
trends were mixed.
