Cement Prices in India Continue to Decline, with Marginal Recovery in Demand: Nomura Report
A recent report by Nomura indicates a continued decline in cement prices across India, with a slight recovery in demand despite adverse weather conditions and elections impacting the market.
The Indian cement industry has been facing a downturn, with a nationwide decline in prices, as reported by foreign brokerage firm Nomura. The report highlights a reduction of ₹10 per bag in cement prices, with significant declines in the South and East regions of India. In the South, prices have decreased by ₹19 per bag, while in the East, the reduction is ₹11 per bag. Additionally, the North region has seen a decrease of ₹10 per bag, and the West and Central regions have experienced a ₹5 per bag reduction.
The decline in demand in the South and East regions has been attributed to poor weather conditions and elections. In the South, heavy rainfall in Tamil Nadu and decreased infrastructure spending in Kerala, Telangana, and Karnataka have led to a drop in demand. The festive season in January is also expected to slow down construction activities. Despite a record increase in September, the East region has continued to see a slump in prices. However, there has been a slight increase in demand in December, following state elections, which has helped the construction sector.
The report anticipates a further decline in construction activities in January, especially in South India, where prices have fallen by ₹19 per bag compared to the previous quarter. The report also expects an increase in housing activities and government spending post-elections, which could lead to a recovery in the cement market. UltraTech is expected to dominate the market in the Central region.
Source:
CNBC TV18 Hindi
