India prepares for the upturn
After a strong first quarter, India’s cement demand experienced a setback in April and May. However, monsoon preparations helped the market recover in the following month and the outlook following a good monsoon is positive.
Following strong growth in the Jan-Mar quarter, cement demand experienced a sudden dip in April, both in terms of MoM and QoQ growth. While in March the market expanded 11.9 per cent, one month later growth decelerated to 4.4 per cent. Growth slipped further to 2.4 per cent in May but recovered substantially in June to 10.3 per cent due to last-minute repairs and construction before the onset of the monsoon. As a result, the Apr-Jun quarter ended with growth of 5.7 per cent on the back of weak housing demand.
Cement companies produced 75.6Mt in the three months ended June, down from 78.2Mt reported in the previous quarter.