India: prices may fall 10% on excess capacity, monsoon

India: prices may fall 10% on excess capacity, monsoon
Published: 17 May 2010

India cement prices are expected to soften by 7-10 per cent in June due to the twin effect of over supply and lower demand due to the monsoon season, industry officials and dealers have warned.

Cement companies have already taken steps by alerting dealers to prepare for the slow season which typically runs from June to September, as rain slows down construction activity and cement sales fall.

The Economic Times spoke with industry executives and sector analysts who said cement prices are expected to come down to around INR235/50kg bag. At present, a cement bag costs an average of about INR255. Retail cement prices will fall to INR230 in the key region of Mumbai, while Delhi will command a price of INR210 after June, according to industry estimates.

Source: Economic Times