Economy & Market
Seasonal decline in cement prices
With the onset of monsoon, the prices of cement has started to decline. Prices have fallen by Rs 5-15 per 50-kg bag this month and it seems prices may fall further. In the northern part of the country prices have declined by Rs 5-10 per bag in the last one month. But, in Delhi the prices have come down to Rs 5-7 per bag. Due to sluggish demand prices in the eastern region have came down by Rs 5-15 per bag this month. In Kolkatta, retail price is around Rs 260 per bag from Rs 300 per bag earlier. The fall in price in Kolkatta is mainly due to low construction activities, labour shortages, and mostly a post-election effect. The dealer expects prices to further fall by Rs 10-15 in a couple of weeks. In western India, some markets in Gujarat have already witnessed a correction owing to monsoon. In Mumbai, though the prices have corrected due to weak demand, but it has been only marginal. However, the fall was highest in some parts of Gujarat where prices fell by Rs 10-15. The correction in prices for the past one month has been Rs 5 to Rs 25 per bag in different markets. Prices in southern India, which remained strong for almost seven months, seem to have started falling. In Hyderabad, prices have fallen by Rs 5-10, whereas in Chennai, there has not been a major correction.