Lack of gas and ups and downs of cement stocks – Tejaratnews

According to Tejarat News, the cement industry is one of the most influential industries on the stock market, and the decrease in the production of this industry can affect the housing market, the stock market, and other markets.

The story of the decrease in cement production also goes back to the electricity and gas cuts in industries in summer and winter. Every year in the summer season, due to the lack of electricity, industries face a decrease in electricity pressure, and in the winter due to the cold, their gas is rationed; This shortage or rationing or pressure reduction causes the amount of industrial production to decrease and the result is an increase in the price of this product in the market.

With the increase in the price of cement in the market, the total cost of the building also increases to some extent, and this means a blow to the country’s economy.

The status of cement in the stock market

In general, there are 35 cement companies in the stock and over-the-counter markets, which constitute about 1% of the total value of the stock market. On average, the efficiency of this group in the last year was negative 33%; While the stock and over-the-counter markets have recorded a positive return of 6%. Of course, the 10-year return of this industry was 49%, similar to the return of the capital market.

From 1994 to 1400, the amount of debt of the cement industry has increased from 4 thousand billion tomans to 7 thousand billion tomans. Of course, there is a reason for this increase in the amount of debt; From 1993 to 1996, due to currency suppression, mandatory pricing, negative competition, economic recession, imposition of tariffs, interest rates, and liquidity problems, it is in a very difficult situation, and part of the increase in this debt is logical.

Of course, due to the sanctions, the equipment of these industries was not updated, and this factor causes the amount of production of the cement industry to decrease. According to the published statistics, about 10 million tons of the companies’ capacity has been lost due to the lack of equipment updating, and gas and electricity outages also cause more damage to industrial equipment.

The share of cement in construction costs

As mentioned, the increase in the price of cement can have a small effect on the finished price of the building. For example, if the price of cement increases by 33%, the cost of building an apartment will increase by only 85 thousand tomans, which is about 0.5% compared to the price of 47 million tomans per square meter.