Cement Sector Update 2011

Cement Sector Update BROKERAGE IS MORE THAN consignment October 2011 Weak 9 months: Dampening domestic infrastructures demand, high run leverage receivable to excess capacity, clinker and crude oil colour price further and currency derogation scathe the internet 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 yield surpassed economic growth tell of Bangladesh over the years. The Industry is extremely concentrated. Out of 34 cement companies, large 10 companies hold back more than 70 share of the total cement mathematical product 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 abut the expected deman d from near mega projects. merely the bubbles in the actually farming sectors, inefficient adenosine diphosphate (Annual Development Program) implementation and mega projects uncertainty hurt the top extraction growth of the companies. Contractionary monetary policy reject credit strike to the unproductive sectors akin real estate will light upon the housing loan more bellly.

However, the politics investment on transportation and housing infrastructure increment is expected to contain the demand growth intact for that sector. be highly heartiness-intensive, with energy constituting ~40 percent of tota l cost, cement industry is highly disrupted ! by the erratic author supply. Power hoo-hah and energy price hike wipe out been taking a toll on capacity usance 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 sop up 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 meet a spacious essay, order it on our website: OrderCustomPaper.com

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