Cement prices moved up across the regions (except South and Maharashtra). Central and Eastern region witnessed highest increase followed by North. However, dealers across the regions highlighted the uninspiring secondary/retail sales. Dealers, on the other hand, attribute the rise to unviable price levels at Dec-end, renewed discipline, shortage of rakes and increased buying by stockists in anticipation of high prices.
East leads with highest price increase in the range of Rs25-40/bag: Benefitted by better demand and reduced flow of material from Satna cluster due to unavailability of rakes, prices in Bihar rose by Rs35-40/bag till date over December end levels. Prices in Orissa rose by Rs35-40, primarily on the back of better discipline. Prices in Kolkata witnessed lesser increase of Rs20/bag.
Central UP garners majority of increase in Central region: Prices in Lucknow rose by Rs30-35/bag on the back of reduced supplies from Satna belt and restocking by stockists, despite slow secondary demand. On the other hand, price increase in MP and rest of the UP was limited to the extent of Rs10-15.
Prices pick up in all key markets of North: Punjab witnessed highest increase of Rs35-40/bag, primarily led by steeper cut during December relative to other states. Prices in Delhi and Haryana rose by Rs15/bag during the month. While, Rajasthan lagged rest of the states with a price increase of Rs10/bag on account of volatile demand, making tough for implementation of price increases.
Western region extends the lean patch: Wholesale prices in entire Maharashtra remained flat in the month due to weak demand across the sectors. Price increase in Gujarat restricted to Rs10-12 due to high prices and muted demand.
Weak AP hits discipline hard; rest of South sluggish: Prices in AP corrected by Rs7-10/bag during the month on the backdrop of overly tough demand conditions, fragmented discipline and excess supplies. Sentiments in so-far stable Bengaluru and Tamil Nadu markets turned negative due to dearth of new govt projects, poor order bookings and tight liquidity positions.
Valuation and Outlook: We strongly believe that current strength in prices don't reflect the true fundamentals. Weak secondary sales and reduced off-take in non-trade segment clearly substantiates the poor demand sentiments. We believe that over-stretched discipline, tough demand environment and increased supplies would make it increasingly difficult for the sector to meet the high expectation of the street. We continue to maintain Underweight rating on UTCEM, ACC and ACEM, given their expensive valuations. We continue to like Shree Cement , backed by strong earnings outlook and attractive valuations.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Anda sedang membaca artikel tentang
Cement prices rise but real demand absent
Dengan url
https://untukkesehatanda.blogspot.com/2013/01/cement-prices-rise-but-real-demand.html?m=0
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Cement prices rise but real demand absent
namun jangan lupa untuk meletakkan link
Cement prices rise but real demand absent
sebagai sumbernya
0 komentar:
Posting Komentar