Economy & Market

Less demand weighs on cement prices

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Emkay Global Financial Services has come out with its report on cement space. The firm remains positive on Grasim, Shree Cements and Madras Cements. According to the firm all India cement price was at Rs 289 per bag, which declined due to festive season. India’s central and northern regions witnessed a steep decline in prices by 5.5 per cent and 5.3 per cent respectively followed by east -3.7 per cent and west – 2.6 per cent. Prices in the southern region remained flat v/s expectation of further bounce back in AP. However cyclone Nilam impacted Andhra Pradesh demand restricting bounce back of prices, strike in Kerela by the dealer association disrupts the demand scenario in the region.Demand now remains a key driver as it has finally started weighing down on prices and any hikes expected in Dec and Jan would have to be supported by a healthy demand growth.

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