Cement prices in South recover sharply
After correcting sharply by nearly 2% on a month-on-month basis in March, as expected, cement prices in southern India have improved sharply. Factors like increased competitive intensity, sand procurement issues and water shortage in some markets of Tamil Nadu and Andhra Pradesh took a toll on demand, hurting prices. As a result, cement companies catering to that region resorted to price cuts to push volumes. A recent dealer channel check by brokerage firm Motilal Oswal Securities Ltd shows that cement prices have recovered sharply by Rs30-50/bag in April. While the average all India cement price for April increased by nearly 4% month-on-month, the price per 50kg cement bag rose 12% in south India versus March 2017.