Coal news and updates

Barring south India, cement prices in other parts of the country have begun to improve after remaining subdued until January, mainly impacted by demonetisation . According to dealer channel checks by various brokers, cement prices in the southern region, which were robust in the past, are now down by nearly 2% month-on-month. Since south-based cement makers saw strong volume growth in the December quarter unfazed by the currency ban, what has pushed cement prices lower now?

 

Increased competitive intensity, sand procurement issues, and water shortage in some of the markets of Tamil Nadu (TN) and Andhra Pradesh (AP) have hurt demand, thus hurting prices. “Companies did try to undertake hikes in the AP/Telangana (TG) markets, but the hikes didn’t sustain. Versus pre-demonetisation levels, prices are lower at Rs260/bag in AP/TG (versus Rs300/bag in October), at Rs320/bag in Karnataka (versus Rs330/bag), at Rs330-335/bag in TN (versus Rs345/bag),” said a recent Antique Stock Broking Ltd report.

Source:Livemint.com