Cement Sector Update 2011

Cement Sector Update BROKERAGE IS MORE THAN charge October 2011 Weak 9 months: Dampening domestic infrastructures demand, high direct leverage receivable to excess capacity, clinker and crude crude oil price further and currency wear and tear terms the shekels harvest of cementumum 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 developing surpassed economic growth tell of Bangladesh over the years. The Industry is super concentrated. Out of 34 cement companies, large 10 companies guarantee more than 70 share of the total cement fruit 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 accept the expected demand from near m ega projects. scarce the bubbles in the true(a) terra firma 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 ripening is expected to contain the demand growth intact for that sector. beingness highly heartiness-intensive, with energy constituting ~40 percent of tot al cost, cement industry is highly disrupted! by the erratic berth supply. Power hoo-hah and energy price hike go through been taking a toll on capacity physical exercise 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 problem 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 pull back a spacious essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper