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Synopsis
In times of weak demand, oversupply of cement reduces the scope to raise prices as producers become more aggressive in selling cement to increase capacity utilisation. Currently, the sector’s utilisation is 70-75%.
ET Intelligence Group: Cement companies may not be able to continue raising prices unlike in the recent past following muted demand scenario and higher competitive pressure amid expanded capacities. These factors are compelling cement manufacturers to follow a volume-based strategy wherein prices are adjusted to boost sales volume. This is likely to affect their operating margins amid higher input costs.
A key concern is that the demand is not
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