Indian producers consider early price reduction on monsoon

Indian cement companies are considering a reduction of INR8-10/bag later this month  in anticipation of a slowdown in construction activities due to the arrival of monsoon season.

The price correction during monsoon is seasonal but this year it has come little earlier due to subdued demand, writes Realty Plus.

 "The price correction has started from the month of May and this month cement companies are contemplating to reduce prices on an average of INR10/50kg across the country," said the president of All India Cement Dealers Association.

At present a 50kg bag of cement costs between INR260-300 across the country. "The price correction is seasonal and we will decide on it once the monsoon sets in," said a senior official from Ambuja Cement.”

During May, 2012, prices have declined by INR5-12 in north, west and east India. In the south and central regions cement prices have been stable, said industry experts. Demand in May 2012 has slowed, compared to April 2012 levels. "Most dealers in India expect prices to decline after mid-June," said Jaspreet Singh Arora, an analyst at Anand Rathi.