Growing demand in India from infrastructure projects ahead of the monsoon, and a fall in prices have boosted cement sales in May. There has also been greater offtake from large real estate projects.
However, cement companies with an all-India presence reported a marginal fall in despatches month-on-month due to a fall in demand in the southern region which saw maximum capacity addition to the tune of 25Mt.
Cement prices, on an average, have fallen by INR3-5 a 50kg bag across regions in May.
However, the expected slowdown in capacity addition and revival in demand may arrest a further fall in prices.
Jinal Joshi, senior research analyst, Jaypee Capital, said going ahead cement prices may come down in this fiscal but the fall would be much lower than the previous down cycle.