Cement shares build on relaxation of export ban

Four frontline cement shares rose between 1.37% and 3.69% after the Union government partially lifted a ban on cement exports.

Ambuja Cement (up 3.69% to Rs 101.20), UltratechCement Company (up 2.52% to Rs 651.95), ACC (up 1.37% to Rs 664.50), and India Cement (up 3.51% to Rs 162.30), advanced.

Ambuja Cement clocked volumes of 1.28 lakh shares, UltratechCement Company notched volumes of 3228 shares, ACC clinched volumes of 33,701 shares and 61,827 shares were traded on India Cements counter on BSE.

As per the notification of Directorate General of Foreign Trade (DGFT) issued yesterday, 27 May 2008, export of cement will be allowed from ports based in Gujarat. Gujarat accounts for almost 90% of the country’s cement exports and approximately two million tonne of cement is exported annually from Gujarat.

The partial relaxation on the export ban comes at a time of expectation of slow down in the demand of cement in the country with monsoons approaching.

Earlier, on 11 April 2008, the government had banned cement export to increase availability of the construction material in the domestic market and keep a check on prices, which among other items had fuelled inflation.

Earlier this month, the government had allowed export of cement and cement clinkers to Nepal