India's average cement prices rise in September

India's average cement prices rise in September
09 October 2019

All-India average cement prices increased around 3.2 per cent YoY to INR305-310/50kg bag (US$4.29-4.36/50kg bag) in September 2019. In particular, the improvement was led by a recovery in southern India which saw prices rise by 1.9 per cent YoY and 4.8 per cent MoM.

While average cement prices in the trade segment remained broadly resilient in September 2019, demand momentum was negatively impacted by a protracted monsoon season and a slowdown in government spending, according to Business Standard.

"Most dealers said that sales volume was badly impacted in September 2019 and is meaningfully lower compared to September 2018, as the lack of demand from government-sponsored infrastructure and housing projects has been the key factor for demand slowdown. Notably, with the likely pick-up in trade demand from October 2019, the dealers expect competitive intensity in non-trade segment to recede and the pricing momentum to remain benign hereon," said Naveen Kulkarni, head of research at Reliance Securities.

Overall, in the 2QFY19-20, cement prices in the northern region remained the most resilient and advanced 11.8 per cent YoY. This was followed by the central region (+4.9 per cent YoY) and the western region (+3.2 per cent YoY). However, average prices in the east of the country declined 1.6 per cent YoY and the south was subdued at 0.2 per cent YoY growth in the quarter.

Published under Cement News

Tagged Under: India Prices cement prices