With construction activity likely to pick up post-monsoon, Indian cement prices are expected to recover.
"We expect cement prices to recover after rains. With the construction activity expected to pick up post monsoon, demand is likely to rise," Centre for Monitoring Indian Economy (CMIE) said in its monthly review.
Cement prices have declined following sluggish demand from May onwards. Prices in Mumbai, Delhi and Kolkata market are down from their peak levels of March-April 2011, it said. Prices in Mumbai market were down to Rs276 /50 kg bag in July 2011 from Rs283 in April.
In the Delhi market, cement prices declined to Rs256/50kg bag from the peak level of Rs261/50kg bag in April. Prices in Kolkata market have come down to Rs247 per 50kg bag during the month from its peak level of Rs298 per 50kg in March.