Economic Times reported that cement prices in November saw corrections in most of the regions with central, eastern and northern regions bearing most of the brunt. Hyderabad surprisingly was an exception to the fall in price.
Cement prices after the monsoon season are anticipated to improve. The month of October saw a slight uptick in the prices across regions and the same was expected in the month of November.
Bleak demand scenario in Kolkata led to a correction in prices by INR 12 per bag to INR 350 per bag which was lower than the peak price of INR 390 per bag.
Prices in Delhi fell by 10% to INR 295 per bag due to poor demand failing the attempts of price increase by the dealers there. Shortage of sand led to a slight decline in the cement prices in Punjab.
Western and Southern regions witnessed flat MoM cement prices with Hyderabad being an exception, where the prices increased by 12% to INR 300 per bag despite feeble demand. Realizations were expected to improve in Southern and Western regions as well, however, cyclone Nilam impacted the demand situation and hence the flat price.
Few analysts have become cautious of their earlier stance of improving situation for the cement companies. The increasing gap between the demand and supply situation along with price corrections have made analysts wary of the situation. Few believe that the cement companies still have long way to go before they see a secular uptrend in the cement prices.
