Decline in Cement Prices in India: Analyzing the Contributing Factors and Future Outlook
A report by Nomura highlights a nationwide decline in cement prices in India, with significant reductions in the South and East regions, influenced by various regional factors.
The Indian cement industry is currently experiencing a downturn, as indicated by a recent report from Nomura. This report shows a nationwide decline in cement prices, averaging a reduction of Rs 10 per bag. The most notable price drops have been observed in the South and East regions of the country, with declines of Rs 19 and Rs 11 per bag, respectively.
In the South, the demand for cement has been subdued, primarily due to heavy rainfall in Tamil Nadu and decreased infrastructure spending in states like Kerala, Telangana, and Karnataka. Additionally, the upcoming festive periods in January are expected to further slow down construction activities. Despite a record rise in prices in September, the East region has continued to see a slump in prices. However, December witnessed some recovery in demand due to price corrections.
The West and Central regions of India have also experienced a dip in cement prices but anticipate a revival in demand post mid-January.
UltraTech is projected to lead the volume in the Central region. This anticipated recovery offers a glimmer of hope for the industry, which is currently grappling with a sharp rise in construction costs and a 20% price hike, leading to a significant decline in sales and profitability.
Source:
bnnbreaking.com
