Indian cement prices are expected to rise by INR15-20/bag (US$0.19-0.26) due to supply constraints, despite dealers across the country expecting demand to fall by 30 per cent on the back of stalled construction projects, reports analytics agency Crisil.
However, over the medium term, the price hike is expected to be rolled back due to the low demand and rising competition. The delay in construction work is expected to be anywhere between 4-6 months, depending on the lockdown outcomes.
"Rural areas, where engagement of migrant labourers is just 30 per cent, compared with 80-85 per cent for urban regions, are expected to see quicker resumption in construction activities," said the agency in its report.
