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Weakness in cement prices continued in Jun’22

HIGHLIGHTS

Average cement prices continued to witness a decline of 2.3% MoM in Jun’22 following a 2.8% decline in May’22. The price decline is driven by sharp decline in East (-6% MoM) followed by Central (-4% MoM) and West (-2% MoM) regions. Prices in North and South remained flat on MoM basis. Overall, cement prices for 1Q was up 3% QoQ (+5% YoY). Sharp uptick in commodity prices will continue to impact the margins in 1QFY23. The volumes transported through railway freight indicate a minor improvement in demand on MoM basis. In comparison to last year, transported volumes in May’22 reported strong growth of 30% YoY, owing to a low base. Continued softening in demand has led to weakness in the cement prices in Jun’22.

West: Prices in west declined by 1.8% MoM in Jun’22

* Mumbai: Prices in Mumbai reported marginal decline of 1.3% MoM in Jun’22

* Ahmedabad: Prices in Ahmedabad decreased by 3.7% in Jun’22

* Pune: Prices in Pune was marginally up by 1.4% in Jun’22

South: Prices witnessed flattish trend in Jun’22

* Hyderabad: Cement prices witnessed sharp rise of 6% MoM in Jun’22

* Chennai: Prices in Chennai reported a decline of 3.6% in Jun’22

* Bangalore: Prices in Bangalore was down by 2.2% MoM in Jun’22

North: Prices have witnessed a marginal decline of 0.8% MoM in Jun’22

* Delhi: Prices in Delhi were lower by 1.2% MoM in Jun’22

* Jaipur: Cement prices in Jaipur witnessed a flattish trend sequentially in Jun’22

* Ludhiana: Cement prices reported a stable trend in Jun’22

East: Prices in East declined materially by 6% MoM in Jun’22

* Bhubaneswar: Prices witnessed a decline of 5.7% MoM in Jun’22

* Patna: Prices in Patna declined by 5.6% MoM in Jun’22

* Kolkata: Kolkata prices trended lower by 7% sequentially in Jun’22

Central: Prices witness a decline of 4.3% MoM in Jun’22

* Lucknow: Cement prices witnessed a decline of 6% MoM in Jun’22

* Bhopal: Prices remained flat sequentially in Jun’22

* Indore: Prices witnessed a stable trend MoM in Jun’22

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