Cement price hikes initiated during February in the Indian market have failed to stick during March as demand remains subdued across the country.
The Economic Times reports that a number of producers have been forced to reduced prices in several areas to meet year-end targets. As a result, the nationwide average was INR300/50kg bag – the same as in February.
Prices in the central region corrected by INR5-10/bag after the February peak was followed by weak demand due to the festival of Holi. The festival also weakened construction activity in the western region, particularly Gujarat. In Maharashtra, problems obtaining sand and water also contributed to weaker prices. Northern Indian prices remained relatively stable, the ET reported, except in Rajasthan and Punjab where they fell. The Rajasthan market saw the addition of new capacities while Punjab also faced issues with sand supplies.
Eastern Indian proved to be the star performer with prices holding up despite being the highest across the country. South India, on the other hand, is still facing an oversupply situation and the only state to buck the trend was Hyderabad where prices rose on the back of a weak base last year.
