As utilisation peaks, cement cos see stable prices from June
The Financial Express, Corporates & Markets, May 6, 2009, Page 1
Smita Joshi Saha, Mumbai
With capacity utilisation at its peak, the 212 million-tonne Indian cement industry expects prices to stabilise from June.
Cement players, with whom FE spoke to, said they don’t expect any immediate rise in prices and are looking at maintaining the current rates.
S Chouksey, wholetime director of JK Lakshmi Cement, said, “I don’t see any immediate rise in cement prices. We had tried to maximise our despatches and also postponed our normal plant maintenance shut down to meet the increased demand in the last quarter. However, we will now be going ahead with our mandatory plant shutdown. The industry will face an oversupply situation with more stock coming in from June-July,” he added.
Vinod Juneja, managing director of Binani Cement, also confirmed that the company would currently look at maintaining its prices.
Meanwhile ACC Ltd, the country’s largest cement producer, had also said it has not increased prices in Delhi since April 1 and has no plans to raise cement prices further in the city.
The company, however, remained silent on price movements in rest of the country.
An e-mail query on the company’s price decision on the remaining markets did not elicit any response.
With large capacity additions expected in the next two quarters, cement manufacturers anticipate an oversupply situation along with a fall in demand.
J Datta Gupta, chief commercial officer of ACC Ltd, had said in a statement, “Cement prices vary from location to location, and depend on the demand-supply balance. With large capacity additions expected in the next two quarters, it is expected that the prices will stabilise from July.”
Cement dispatches have grown 8-10% in the last five successive months and prices were hiked several times during quarter January-March, taking the average cement price higher by Rs 8-10/bag.
Meanwhile, Fitch, in its industrial sectoral outlook, said, along with the slowdown in demand, capacity additions have increased, negatively affecting the operating rates for producers. However, infrastructure spending of the government and upcoming Commonwealth Games would largely benefit players.
The Financial Express, Corporates & Markets, May 6, 2009, Page 1
Smita Joshi Saha, Mumbai
With capacity utilisation at its peak, the 212 million-tonne Indian cement industry expects prices to stabilise from June.
Cement players, with whom FE spoke to, said they don’t expect any immediate rise in prices and are looking at maintaining the current rates.
S Chouksey, wholetime director of JK Lakshmi Cement, said, “I don’t see any immediate rise in cement prices. We had tried to maximise our despatches and also postponed our normal plant maintenance shut down to meet the increased demand in the last quarter. However, we will now be going ahead with our mandatory plant shutdown. The industry will face an oversupply situation with more stock coming in from June-July,” he added.
Vinod Juneja, managing director of Binani Cement, also confirmed that the company would currently look at maintaining its prices.
Meanwhile ACC Ltd, the country’s largest cement producer, had also said it has not increased prices in Delhi since April 1 and has no plans to raise cement prices further in the city.
The company, however, remained silent on price movements in rest of the country.
An e-mail query on the company’s price decision on the remaining markets did not elicit any response.
With large capacity additions expected in the next two quarters, cement manufacturers anticipate an oversupply situation along with a fall in demand.
J Datta Gupta, chief commercial officer of ACC Ltd, had said in a statement, “Cement prices vary from location to location, and depend on the demand-supply balance. With large capacity additions expected in the next two quarters, it is expected that the prices will stabilise from July.”
Cement dispatches have grown 8-10% in the last five successive months and prices were hiked several times during quarter January-March, taking the average cement price higher by Rs 8-10/bag.
Meanwhile, Fitch, in its industrial sectoral outlook, said, along with the slowdown in demand, capacity additions have increased, negatively affecting the operating rates for producers. However, infrastructure spending of the government and upcoming Commonwealth Games would largely benefit players.
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