Indian cement prices have started to ease over the past two weeks, declining by an average of two per cent, according to reports in the Business Standard of India.
Markets had been witnessing a continual increases despite the Competition Commission of India’s cartel ruling back in June However, the average nationwide price of cement has fallen from INR310/50kg bag to INR304/bag.
Heavy rains and floods in the northeast and states like Bihar and Uttar Pradesh have resulted in prices coming down. According to dealers, in Bihar alone, prices have dipped from INR350 to INR310 while in Uttar Pradesh, the prevailing prices are INR280 against INR320 in July. Northeastern markets have also seen a fall of INR10-15/bag. In mid-July prices had surged to as high as INR315, according to one Mumbai-based brokerage.
Some analysts had anticipated cement prices to come under pressure following the CCI’s decision to fine 12 cement producers on cartel practice. However, prices instead climbed beyond INR300 before fall to an average of INR290/bag.