Cement Price Stable Amid A Respite In Fuel Prices: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Imported (South African and Australian) coal price has dipped sharply with an average quarter-to-date price decline of 28-33% in Q4 FY23. Imported petcoke price has remained range-bound at $165-185/tonne over the past few months. We expect average energy cost to reduce by Rs 80-90/tonne in Q4 FY23 and Rs 200/tonne in Q1 FY24. Cement players have attempted price hikes in Feb-March 2023; however, a significant portion of the hikes was reversed by offering discounts, incentives and price cuts. We believe that North, West and Central India have witnessed an average price increase of 1-3% QoQ in Q4 FY23; though, prices in East and South regions have declined 2%/5% QoQ. In Q4, the all-India average cement price appears to be flat to marginally negative versus Q3 FY23. Cement demand momentum is largely intact with higher growth visible in nontrade segment (infrastructure development, real-estate and private capex) while individual-house-builder and retail demand remain modest. We estimate 4-5% YoY demand improvement in Q4 FY23, even on a high base of the past two years..Click on the attachment to read the full report:.Metals Sector Check - When China Sneezes, The World Catches A Cold: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cement Price Stable Amid A Respite In Fuel Prices: Motilal Oswal

Fuel price declining; expect its major benefit to reflect in Q1 FY24.

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