Cement price declines in some parts of India
Cement prices declined in some parts of the country recently because of muted demand for the construction material.
Central region witnessed decline in the price by Rs 5-10 per bag after peaking out in February primarily on account of weak demand amid the festival of Holi. The festival also weakened the construction activity in Western region especially in Gujarat. In Maharashtra, the problems pertaining to sand and water, also contributed to the weak cement prices.
Some cement makers reduced prices in several areas to meet their year-end targets on the back of weak despatch figures. As a result pan India average cement prices were nearly Rs 300 per bag of 50 kg (same as in February).
Price of cement remained steady in eastern India. In south India, excess supply of cement prevented rise in the price even though there was improvement in demand. Hyderabad was an exception as the rise in price was more owing to a weak base of last year.