Indian cement prices are on a downward spiral with the onset of monsoon. Prices in the southern states have started to decline, with Chennai witnessing a drop of INR10/50kg bag from June 1 for at trade level and a drop of INR15/bag for the non-trade.
A member of the stockist association said: “The price at which we are selling to builders is at INR250-265 per bag. Trade prices have fallen from their peak of INR290-295 per bag to INR280-285 per bag. We are expecting further reduction beyond July, as sand supply has been bad for a month, which has put construction under pressure. In Andhra Pradesh, prices have fallen by INR20-25 to INR235-240 per bag from the earlier INR260-265.”
In the eastern part of the country, cement prices have fallen by INR5/50-kg bag. A dealer based out of Kolkata says, “Cement prices for retail buyers have come down to INR280-285 per bag and wholesale prices have fallen to INR275/bag for Grade-A cement buyers. At present, sales have fallen and prices have been falling by INR5/bag every week since the first week of June.”
A report released by Alchemy Share and Stock Brokers said: “Prices in Maharashtra remain at high levels due to supply issues. Demand remains weak owing to slow clearance of projects and onset of early monsoons, which affected repair work in Mumbai. Prices in Gujarat have gone down due to the high level of supplies. Cement markets are expected to remain weak until September. The cement price in Mumbai is at INR260-288 per bag in June, a drop of INR6-15.”