Cement prices largely remained flat in October as attempts at hiking prices in north and central India proved futile due to an extended monsoon and labour shortage during the festive season.
All-India average cement prices marginally dipped by Re 1 month-on-month to Rs 337 for a 50-kilogram bag in October, according to the survey of 12 dealers across five regions.
While south India was the only region to witness a price cut, cement prices on a pan-India basis were cushioned by a small price hike in the eastern region.
South Resumes Downtrend
Cement prices in the southern region fell the sharpest after an initial price hike of Rs 30 per month was rolled back within a week. Lack of construction activity due to monsoon, cancellation of orders from Andhra Pradesh and Telangana governments and supply glut dragged the prices lower by Rs 10 per bag to Rs 315, according to three dealers surveyed by BloombergQuint.
North, Central India See Price Rollbacks
Cement prices in north and central India remained flat after attempts to hike prices by Rs 5 per bag at the start of the month failed. Prices in both the regions were rolled back due to lack of demand. Prices have been stable in central India due to limited capacity additions.
West Sees Flattish Trend
Elections in Maharashtra and lack of construction activity in Gujarat mainly weighed on the pricing power in the western region.
Eastern India Bucks The Trend
East was the outlier as dealers in the region undertook a price hike after four straight monthly cuts. Cement prices in the east rose by Rs 5 per 50 kg bag to Rs 315.
Overall, poor real estate activity, extended monsoon and liquidity crunch weighed on the pricing power of cement makers for yet another month and the prices aren't expected to recover until January, Sanjay Ladiwala, former president of Cement Stockists & Dealers Association of Bombay, told BloombergQuint. Of all the regions, he expects prices to recover faster in eastern, northern and central India due to favourable demand-supply dynamics.
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