MOSL: CEMENT-Price hikes taken in Feb’19 moderate in Mar’19; Future hikes look difficult in the run-up to the elections
CEMENT: Price hikes taken in Feb’19 moderate in Mar’19; Future hikes look difficult in the run-up to the elections
Only 1% QoQ price hike in the North led by rollback of declared price hikes
Prices in North India increased by INR2/bag MoM in Feb’19, but were flat in Mar’19. The Delhi-NCR region witnessed hike of INR20/bag in Feb’19 in the non-trade segment. However, hikes announced in the trade segment were not sustainable. Demand in Rajasthan declined drastically after the state elections; while INR12/bag price hike was announced in Feb’19, only INR7/bag was sustainable. Prices in Punjab and Haryana were steady as the region faced problems on availability of sand and aggregates.
No price improvement in the East
Prices in the eastern region increased by INR3/bag to INR285/bag in Feb’19, with a price increase in the range of INR5/bag in Kolkata and Bihar. The region witnessed limited supply from southern players during this time. The supply of clinker was also affected due to shortage of wagons. But, the eastern region witnessed a decline in prices by INR3/bag in Mar’19 led by INR10/bag decline in prices in Kolkata. This resulted in flat QoQ prices in the East during 4QFY19.
Healthy show in the West led by Maharashtra
Prices in Mumbai increased by INR10/bag in the trade and non-trade segment in Feb’19. Nagpur, too witnessed an increase of INR20/bag in Feb’19 in the non-trade segment. Pune saw healthy INR30/bag hike in the month. The region also witnessed reduction in dispatches from the South. As a result, prices in the West increased by INR14/bag MoM in Feb’19. Prices increased by INR5/bag in Mar’19, which was led by INR10/bag increase in Mumbai and Pune, and flat prices in Nagpur and Ahmedabad. Overall, prices in the West improved by a healthy rate of 5% QoQ.
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