All-India average cement prices have slipped nearly two per cent in April. A 50-kg bag is now sold for Rs 297, compared to Rs 302 earlier. The decline has been caused by unexpectedly poor demand. According to sector analysts, in the January-March quarter, demand was negative, against expectations of 8-10 per cent rise.
The east, west and central markets are the worst hit. In the western market, comprising Gujarat, Maharashtra and southern Rajasthan, prices have dropped by Rs 22 to Rs 285 a bag. The central region witnessed a drop of Rs 6 to Rs 253, while the eastern market saw a price decline of Rs 4 to Rs 310 in April. The northern region continues to see pressure on prices, which was Rs 263 a bag in April. A weak monsoon last year and widespread unseasonal rain for the past month in the north and central parts is likely to further push demand down, especially from the non-urban belt. The southern region is the only market where prices are much higher, around Rs 370. Capacity utilisation also declined in 2014-15 to 72 per cent against 74 per cent in FY14.