India’s Economic Times has reported that cement prices are expected to soften by about INR7 to INR12 per bag in the first week of January, due to a slowdown in the housing sector and cheap imports of cement from Pakistan. Currently, a cement bag cost around INR215 to INR235 on an average in country.
Senior industry officials said that companies such as Ambuja Cement, Shree Cement, Binani Cement, Dalmia Cement are likely to cut prices by INR 7 per 50kg bag due to the slowdown and increased supplies from across the border.
Mr AL Kapur MD of Ambuja Cement said that "Prices will further reduce by INR 5 per bag to INR7 per bag due to slowdown in real estate and excess capacity."
Mr Kapur said that "Imports from Pakistan has further hit the domestic industry especially in the northern markets of Punjab and Haryana. The prices will drop further unless the government bans import of low cost cement from Pakistan."
As per report, once the drop of INR 7 is implemented, retail cement prices will come down to INR 222 in the key region of Mumbai also, while it will vary in the range of INR 210 to 230 in other regions.