Indian cement prices rise 1% in March

Indian cement prices rose MoM in March to INR290-295 (US$4.37-4.44)/bag as demand led by construction activity in north and central India improved slightly, acording to Cogencis Information Services. Prices in north India rose by eight per cent MoM, while in central India, they were up by six per cent.

However, the overall picture YoY saw cement prices fall by six per cent. In western, eastern and southern regions cement prices decreased in the range of around 1-6 per cent, mainly due to excessive supply and volume push, said Binod Modi, research analyst at Reliance Securities.

The Jan-Mar quarter of 2015-16 has been good in terms of volume growth mainly supported by a pick-up in non-trade sales. "However, prices remained under pressure as average price witnessed a decline of around eight per cent YoY and two per cent QoQ," the analyst said.
  
In addition, the FY16-17 (Apr-Mar) is excpected to witness a decent uptick in demand driven by a recovery in construction activities from new infrastructure projects, as well as a pick-up in rural demand due to a potentially-favourable monsoon and an increase in housing activities, especially from industrialised housing and buildings segment.