Latest building materials data from the government shows that the level of brick stocks held by manufacturers has fallen for five months and is now 11% below their recent peak in May 2016. Moreover, the more representative YoY rate of increase has narrowed almost every month for a year as manufacturers, particularly Forterra, have trimmed production, while imports have also normalised. This, in our view, could support pricing power and help dispel concerns among some investors about over-stoc
13 Dec 2016
Brick stock overhang continues to abate
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Brick stock overhang continues to abate
Forterra Plc (FORT:LON) | 160 0 0.0% | Mkt Cap: 341.1m
- Published:
13 Dec 2016 -
Author:
Alastair Stewart -
Pages:
3
Latest building materials data from the government shows that the level of brick stocks held by manufacturers has fallen for five months and is now 11% below their recent peak in May 2016. Moreover, the more representative YoY rate of increase has narrowed almost every month for a year as manufacturers, particularly Forterra, have trimmed production, while imports have also normalised. This, in our view, could support pricing power and help dispel concerns among some investors about over-stoc