Andhra Pradesh hit by declining prices and demand, India
Cement producers operating in the Indian state of Andhra Pradesh continue to suffer due to lower prices and demand in the region, the Economic Times of India reports.
Cement prices have corrected sharply by 10 per cent over the last few weeks and are down 25 per cent on peak levels from INR300/bag. The decline in prices is attributed to new market entrants rather than seasonal effects. For example, JP Cement is selling cement at around INR201-220/bag which is INR20-30 lower than prices by larger Indian producers such as UltraTech and ACC.
The Andhra Pradesh cement market has seen the entry of new players whilst existing producers have been expanding capacities due to the huge availability of limestone.