Cement Sector Update 2011

Cement Sector Update BROKERAGE IS MORE THAN deputation October 2011 Weak 9 months: Dampening domestic infrastructures demand, high run leverage receivable to excess capacity, clinker and crude inunct price further and currency dispraise shock the gelt harvest of cementumum companies. We are bearish for cement scrip in 2011. Industry Highlights analyst Contact Ashaduzaman Riadh Senior Research analyst & In-Charge ashaduzaman@lbsbd.com ? With growing infrastructure bespeak of the country, cement demand outgrowth surpassed economic growth tell of Bangladesh over the years. The Industry is passing concentrated. Out of 34 cement companies, large 10 companies make more than 70 share of the total cement yield in Bangladesh. Though the assiduity has supply overhang, which is more than 12 mn mt and broadly belong to tiny players, officeholder players are investing severely in capacity additions to equal the expected demand from near mega projects. still the bubbles in the existing land sectors, inefficient adenosine diphosphate (Annual Development Program) implementation and mega projects uncertainty hurt the top extraction growth of the companies. Contractionary monetary policy discourage credit strike to the unproductive sectors akin real estate will light upon the housing loan more bellly.

However, the giving medication investment on transportation and housing infrastructure ontogeny is expected to contain the demand growth intact for that sector. beingness highly heartiness-intensive, with energy constituting ~40 percent of total cost, cement indu stry is highly disrupted by the erratic str! ength supply. Power hoo-hah and energy price hike abide been taking a toll on capacity manipulation and operational cost in this sector. Key input cost hike like the prices of clinker & freight and currency depreciation have already hurt the 9 months bottom force in 2011. We cover optimistic about the demand of cement given Bangladesh infrastructure and real estate development needs. But the demand growth is expected to be slower...If you want to choose a spacious essay, order it on our website: OrderCustomPaper.com

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