Indian cement prices slip due to delayed monsoons

Low cement demand in India has put a downward pressure on cement prices across the country, correcting them by around INR7-10 (US$0.13-/0.19)/bag since Monday.

Construction activities have not picked up yet due to delayed monsoons but the industry is hopeful of Maa Durga’s blessings as it expects the festival will lead to an improved sentiment amongst consumers and hence, better sales. An official from Ambuja Cement said, “During monsoon prices get corrected but as demand starts picking up with the revival of construction activities before the festive season, cement prices too will go up.”

Vinod Juneja, managing director of Binani Cement said, “In the last few days cement prices have fallen by around INR10 per bag. Sales are slightly improving with monsoon settling down in most of the regions. Demand is expected to get better from here and will be boosted by new highway projects and construction activities.” Cement companies also pin hopes on recently announced reforms by the government, as it will increase the demand for basic infrastructure commodities such as cement and steel.

On an average, cement prices have corrected by around INR7-10 per bag across the country, effective from Monday, as demand continued to be sluggish, said a senior official at Cement Manufacturers Association (CMA). From the peak levels, cement prices have fallen by around INR35-40 per 50 kg bag during monsoon, he said.

After the price cut on 24 September, a 50kg bag of cement in northern India has come down to around INR200 per bag while in the western region it is around INR270 per bag, said the CMA official.