Indian companies’ margins under pressure
Construction activity has hit rough weather especially in the north of India, taking its toll on cement demand, according to local press report.
Even as cement makers are struggling to cope with spiralling costs, the lacklustre demand is now forcing them to put off price increases.
Earlier, the cement companies have announced price hikes between Rs 5-7/bag in northern markets over the weekend. But the price increase failed to take off due to sluggish demand.
The prices in the western and eastern markets have been flat in the last three months. On the other hand, South has been the only exception where realisations have improved in the last quarter.
During Oct-Dec ‘08 cement consumption grew by six per cent against 12.3 per cent growth YoY.
Published under Cement News
