Cement prices may come down on poor demand
Cement prices in India are likely to come down on sluggish demand from construction sector for a short term. The industrial commodity witnessed a Rs 25 a bag (50 kgs each) fall in prices on m-o-m basis in West Bengal as against Rs and Rs 10 a bag in Vidarbha (Maharashtra) region and elsewhere in the country respectively. Demand of the construction raw material generally declines in the lean monsoon season when most of running overhangs.
Since, the sentiment continues to remain poor over the last few months, there is little room for a revival in demand in the upcoming monsoon season. Hence, poor demand show is set to continue in the next three months, say analysts. Consequently, a further price decline of Rs 5-10 especially in the eastern region except Chhattisgarh, cannot be ruled out.
Prices in the northern region i.e. Delhi and NCR are expected to inch upward while in other regions, cement prices are expected to rise by about Rs 10 per bag. The decline in cement price indicates an overall slowdown in construction activities across the country. Also, lower growth in production was mainly attributable to the slowdown in cement offtake led by the muted construction activity.