Economy & Market
Monsoon causes lower cement demand
During August, due to pick up in monsoon, cement demand came down and prices fell by Rs 10 to Rs 30 per bag of 50kg in the south and western parts of India. Large sized cement manufacturing companies like Ambuja and ACC have, on an average, posted a 5 per cent y-o-y decline in the cement dispatches for August 2012.
The trend is likely to be followed by small and mid sized cement companies. The lower demand was mainly due to pick up in monsoon in the south and western part of the country in the last month. The average cement price across the country was around Rs 290 per bag of 50 kgs.
As a result of lower order book of construction companies, cement demand is likely to be muted. Besides, incremental capacity addition is likely to keep cement prices under pressure.