Given that the cost savings from fuel efficiencies are near optimum levels, the recent jump in coal prices poses a fresh threat to the margin profile of all cement manufacturers
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
One of the most critical trends since the onset of the pandemic has been global supply shortages. In the past few months, we have seen severe shortages across many products, from semiconductors to lumber to chemicals. The new pressure emerging from coal appears more severe than others owing to the fossil fuel’s strong link with manufacturing and energy sectors. The current situation has the potential to have a detrimental effect on cement companies as power and fuel expenses constitute…
