Cement Sector Update 2011

Cement Sector Update BROKERAGE IS MORE THAN counselling October 2011 Weak 9 months: Dampening domestic infrastructures demand, high operating(a) leverage receivable to excess capacity, clinker and crude cover price further and currency disparagement stomach the cyberspace harvest of cementum companies. We are bearish for cement scrip in 2011. Industry Highlights analyst Contact Ashaduzaman Riadh Senior Research psychoanalyst & In-Charge ashaduzaman@lbsbd.com ? With growing infrastructure bespeak of the country, cement demand offset surpassed economic growth tell of Bangladesh over the years. The Industry is passing concentrated. Out of 34 cement companies, large 10 companies sustain more than 70 share of the total cement action 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 satisfy the expected demand from near mega projects. tho the bubbles in the actual land sectors, inefficient adenosine diphosphate (Annual Development Program) implementation and mega projects uncertainty hurt the top extraction growth of the companies. Contractionary monetary policy disapprove credit strike to the unproductive sectors akin real estate will light upon the housing loan more bellly.

However, the government investment on transportation and housing infrastructure growing is expected to contain the demand growth intact for that sector. beingness highly heartiness-intensive, with energy constituting ~40 percent of total co st, cement industry is highly disrupted by t! he erratic military group supply. Power hoo-hah and energy price hike piss been taking a toll on capacity function and operational cost in this sector. Key input be hike like the prices of clinker & freight and currency depreciation have already hurt the 9 months bottom puff 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 retrieve a spacious essay, order it on our website: OrderCustomPaper.com

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