Cement Prices in Gujarat Have Dropped by up to RS100 Per Bag

Prices in Mumbai have corrected by RS 5 in the current week, taking the total decline to RS 10 per bag in the past month; Prices in city are currently RS 260-290 per bag IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, in its report said that cement prices in Gujarat have dropped by up to Rs100 per bag (35%) from the peak on account of poor demand (particularly from housing segment) coupled with intense competition. In Gujarat retail markets, the price is RS 220 per bag. "Prices in Mumbai have corrected by RS 5 in the current week, taking the total decline to RS 10 per bag in the past month; Prices in city are currently RS 260-290 per bag. Demand continues to be normal in Mumbai according to the dealers, " the report said. The report stated that prices in the Central, Eastern and Northern regions have dropped by RS 40-80 per bag. Demand continues to be sluggish in most regions, but there are some signs of improvement in Andhra Pradesh. Prices in the Southern region continue to be stable at relatively higher levels, thanks to pricing discipline; Demand continues to be sluggish in all states except Andhra Pradesh. "Price declines in most markets have been steeper than we had expected. Any delay in a sharp recovery post monsoon is likely to result in cuts in earnings estimates for companies (except south-based ones) under our coverage, " the report added. The report was published by IIFL’s Institutional Equities Research desk. Source:indiainfoline.com