Exports revive; sales up in southern markets.
Suresh P. Iyengar
Mumbai, Dec 3 Despite a gloomy outlook, cement major ACC, Ambuja Cement and
Aditya Birla Group have managed to bring down inventories marginally in
November on the back of revival in export demand and a moderate pick up in
sales in the southern States.
Mr A.L. Kapoor, Managing Director, Ambuja Cement, said if not for the
congestion of ships in West Asian ports, the company would have managed to
export more than last month. Ambuja Cement exported 80,000 tonnes of cement and
clinker in November against one lakh tonne in October.
Exports were also affected after the traffic from Gujarat port - the major hub
for cement and clinker shipments - was suspended temporarily after the
terrorist attack in Mumbai on November 26.
Sales rise
ACC dispatched 1.73 million tonnes (mt) of cement even as it produced 1.70 mt
in November. Production was up seven per cent to 1.70 mt from 1.59 mt logged in
the same period last year, while dispatches improved nine per cent to 1.73 mt
from 1.58 mt in November last year.
Ambuja Cement production rose five per cent to 1.46 mt (1.40 mt) while
dispatches jumped nine per cent to 1.47 mt. Cement sales were higher than
production, indicating that the company has reduced inventories.
Aditya Birla Group, which includes Grasim and UltraTech Cement, sold 2.54 mt of
cement in November while it produced 2.50 mt.
Production at ACC and Aditya Birla Group were down when compared on a
month-on-month basis. In October, ACC produced 1.74 mt against 1.70 mt in
November, while in the Aditya Birla Group cement output was marginally down
2.30 per cent month-on-month basis.
Mr Kapoor said "there is no dramatic rise in demand. On a few occasions, we had
to cut down production as there were no place to store, godowns are
overflowing".
Realisation down
Though companies managed to cut down inventories, realisations remained flat.
On the export front, prices fell by 15 per cent.
"We were exporting at $62 a tonne, but the prices have come down to $52 to $55
a tonne in November," he said.
In the domestic market, except for the southern region, there has been demand
stagnation across the country.
Prices dropped in the northern region due to large scale imports from Pakistan
amid slowdown in housing and infrastructure activities, while in the west it
remained flat even as builders cancelled bulk orders, said an analyst.
"Many cement companies were willing to offer discounts on bulk purchases by
builders, but there were few takers. Hit by credit crunch and lack of demand,
builders are postponing their new projects, leading to order cancellations," he
added.
http://www.thehindubusinessline.com/2008/12/04/stories/2008120451460200.htm
Who is wise? He that learns from everyone. Who is powerful? He that governs his
passions. Who is rich? He who is content. Who is that? Nobody
- Benjamin Franklin
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