In August 2021, the all India average cement price fell by nearly 3% to Rs 328 per 50 kg from the previous month led by a steep 6% drop in the prices in the eastern region.
Prices fell by 1-3% in the remaining regions. Intense competition and the monsoon were key reasons for weak price trend. In the eastern region, increased capacity of existing big players, rising price of sand, and weak demand from the state governments led to the steepest fall in prices in August. It is estimated that between FY22 and FY23, 44% of the incremental capacity of India’s cement industry will be in the eastern region. This shows the rising competitive intensity in the region.
Analysts point out that demand has been fairly stable in August. They expect a year-on-year double digit growth in volume for well-placed cement companies for the September quarter.
News Source : EWNS
