Cement sales remain in higher circuit in May

MUMBAI: Cement sales continued to remain strong in May, driven by strong pre-monsoon demand, as high prices in some parts of the country failed to deter buyers.

While Aditya Birla Group’s cement despatches for the month of May grew 7.92%, Gujarat Ambuja’s figures climbed 20%. This, despite consumers resisting price hikes.

The high despatch figures for May also indicate that the manufactures are still in control of the markets. The Aditya Birla Group cement production for May grew 3.66% at 26.09 lakh tonnes, while despatches rose by 7.92% at 28 lakh tonnes in May ’05. The group’s cement production for April-May ’06 stood at 52.86 lakh tonnes which is up by 6.08%, and the despatches climbed 7.51% to 56.33 lakh tonnes.

Grasim Industries shares fell 3.77% to Rs 1705.75 on Thursday, while shares of Ultratech Cement, another Aditya Birla Group company, fell 1.03% to Rs 599.20.

Gujarat Ambuja Cements (GACL), the third-largest cement producer in the country, recorded a 19% growth in production for the month of May ’06 at 13.15 lakh tonnes, while despatches for the month were higher by 20% at 13.12 lakh tonnes.

Ambuja Cement Eastern has also logged in a 13% rise in cement production at 1.67 lakh tonnes for May while despatches grew 19% to hit 1.76 lakh tonnes.
GACL’s shares fell 2.05% to Rs 91 at the BSE on Thursday. ACC, however, has not yet announced its cement despatch figures.