India cement oversupply to persist – BNP

BNP Paribas has said that the oversupply situation in India is likely to persist while cement producers in the southern part of the country are optimistic on the demand outlook.

The house says that while cement makers expect nationwide cement demand to grow 7- 8% in FY13, cement demand growth is likely to trend toward 10% levels in the longer run.

"Producers hint at resumption of government spending on developmental projects and an increase in housing demand from the private sector," says the house; it notes that increased cement demand is for concrete of roads in Andhra Pradesh, low-cost housing in Tamil Nadu, and a pick-up in real-estate in the urban areas of Karnataka.