Cement prices stay firm in May despite pandemic
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Synopsis
Analysts are bullish on cement companies following firm prices and a gradual relaxation in lockdown across states. They believe the strategy of focusing on prices instead of volume improvement will pay off in terms of stable or better operating margins before depreciation, and amortization (EBIDTA margins).
ET Intelligence Group: The trend in cement prices has remained resilient despite demand disruption amid local lockdown in various parts of the country. This is because the cement makers continue to prioritise pricing over volume gain. All India average cement price improved by 1.1% sequentially in May to Rs 356 per 50 kg bag. Compared with the year-ago level, it was a tad lower by1.3%.
JEDDAH: The Saudi Arabian Ministry of Commerce has granted six steel export licenses and six cement export licenses so far this year. In 2020, the ministry issued a total of 21 cement export licenses and 19 steel licenses, and is currently reviewing two other export requests. The new licenses come as construction activity begins to recover following the postponement of many
The acquisition marks another round of consolidation in the South Indian cement market, which is considered the most fragmented in the country with substantial surplus capacities. The key players in the market include UltraTech, Ramco, Chettinad and India Cements.
THE STANDARD By
Macharia Kamau |
April 3rd 2021 at 09:00:00 GMT +0300
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