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New Delhi, April 9 (IANS) Cement costs are anticipated to be additional raised on the again of excessive demand in addition to rising uncooked materials price, mentioned Motilal Oswal (NS:) Monetary Companies (MOFSL).
In March 2022, cement costs rose 2-3 per cent on a month-on-month (MoM) foundation throughout areas regardless of some quantity push, to satisfy the year-end targets.
“We consider that exit cement costs in 4QFY22 had been 3 per cent larger than the common realisation for the quarter,” MOFSL mentioned.
“Our interplay with sellers means that non-trade cement costs in March 2022 rose by Rs 15-20 per bag in south and central, whereas the value improve was Rs 5-10 per bag in north, east, and west India.”
As per the MOFSL, cement firms are planning additional worth hikes to mitigate the influence of rising uncooked materials prices.
“The influence of the rise in coal and petcoke costs will replicate in power prices from April 2022. There was a rise in diesel costs in the previous few days, which is able to result in larger freight prices.
“Firms have indicated a cumulative worth improve of Rs 40-50 per bag throughout areas in April 2022.”
Moreover, it mentioned that sellers have indicated that cement demand improved in most markets in March 2022 after remaining sluggish in January-February 2022.
“We consider that pan-India cement volumes had been 3-5 per cent YoY larger in March 2022 after a decline of 6 per cent YoY throughout January-February 2022.
“Few sellers consider that the expectations of cement worth hikes in April 2022 led to a powerful improve in dispatches on the finish of March ’22 and precise demand developments will likely be identified by mid-April ’22. Nonetheless, most sellers consider that secondary gross sales too had been robust in March 2022.”
MOFSL additionally expects trade volumes to fall by 2 per cent YoY in 4QFY22. “For FY22, we count on quantity development for the trade to be 8.7 per cent YoY.”
–IANS
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