Cement Demand Hit by Heavy Rains.
The cement demand in Aug'20 was affected by heavy rains and sporadic lockdowns in some parts in addition to some weakness in the rural demand. In the North region, volume remains better in Rajasthan and is expected to grow 15-16% yoy in Aug'20. However, in other parts, demand remains muted and volume in the regions
The cement demand in Aug'20 was affected by heavy rains and sporadic lockdowns in some parts in addition to some weakness in the rural demand. In the North region, volume remains better in Rajasthan and is expected to grow 15-16% yoy in Aug'20. However, in other parts, demand remains muted and volume in the regions should be down 2-3% yoy in Aug'20. In the Central region, volume may decline 5-8% yoy as urban demand has still not improved and there has been some decline in rural demand. In the East region, volume is likely to fall 5% yoy due to floods in North Bihar, lockdowns in West Bengal and heavy rains in Odisha. In the South region, volume is expected to decline 22-25% yoy as sales have been affected by the unavailability of laborers and the monsoon in AP and Telangana markets (15-20% mom drop). Volume in Maharashtra remains under pressure and volume is expected to decline 35-40% in the state. In Gujarat, volume may decline 4-7% yoy in Aug'20. We believe that pan-India volume may fall 12-13% yoy in Aug'20.
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