Cement sales fall in Aug as demand slows

Cement sales fall in Aug as demand slows
The Hindu Business Line, September 3, 2009, Page 3

Our Bureau, Mumbai

Cement demand seems to have tapered off in August with the onset of the monsoon and slowing down of activity in the real estate sector.

ACC sales were down 10 per cent in August at 1.65 million tonnes (mt) against 1.81 mt in July.

Output was down at 1.63 mt against 1.83 mt in July. Ambuja Cement sales were marginally up at 1.43 mt (1.44 mt in July) while production rose to 1.42 mt (1.44 mt).

Aditya Birla Group companies, UltraTech Cement and Grasim Industries, reported a seven per cent rise in sales at 2.90 mt against 2.70 mt in July.

Production in August was up to 2.93 mt (2.75 mt).

Dalmia Cement, a prominent player in the south, reported that its August sales were down at 350,000 tonnes against 380,000 tonnes in July. Output dipped to 351,000 tonnes (376,000 tonnes in July).

Shree Cement, one of the largest cement manufacturers in the northern region, has reported a 17 per cent drop in sales at 689,000 tonnes in August against 830,000 tonnes in July. JK Lakshmi Cement despatches were 333,000 tonnes in August (320,000 tonnes).

The poor monsoon has resulted in a sharp fall in demand in the rural and semi-urban regions. “Demand may come down further in the coming months once the impact of the weak monsoon sets in. Besides, the soaring commodity prices will also curtail spending by the common man,” said an analyst.

Cement companies have reduced prices by Rs 10-15 per 50 kg bag across regions to stem the sharp fall in demand.

ACC and Shree Cement shares were down 0.06 per cent and 0.95 per cent to Rs 779 and Rs 1,509 respectively. JK Lakshmi Cement fell one per cent at Rs 135 while Ambuja Cement and Dalmia Cement were up 1.32 per cent and six per cent each at Rs 100 and Rs 203.