As the demand for cement is likely to pick up after the monsoon, prices are expected to go up during the fiscal. The demand may get a boost from the new infrastructure projects coming up in the country.
Growth in cement demand is likely to remain at around 6 per cent during this year. In the past couple of years, consumption grew at a compounded annual growth rate of 5.6 per cent. Despite an excess capacity of 99 million tones of cement in the industry, it is expected that the prices of key building material will go north with demand reaching 249 mt. CARE Research, a division of CARE Ratings projects has reported that the domestic demand is expected to grow at a higher CAGR of 7.9 per cent in 2012-16.