Cement prices recovers to pre-demonetisation level
Cement prices had been negatively impacted in the western, eastern and southern regions after demonetisation, while it remained relatively stable in the northern region.
“With the impact of demonetisation gradually subsiding, cement prices have reached the pre-demonetisation levels in April in most markets. Going forward, we expect prices to be supported by a marginal improvement in capacity utilisation,” said Sabyasachi Majumdar, senior vice president and group head, ICRA Ratings.
Cement prices in the Ahmedabad market, which had declined by 17% during October 2016 to January 2017 period, started a rebound from February this year and increased by around 19% to Rs 265 per bag in April.
Hyderabad registered a decline of 16% during November 2016 to March 2017 period, but a steep hike in April by around Rs 60 pushed the prices up to Rs 325-330 per bag.
The eastern region registered a moderate decline in cement prices by 7% during November 2016 to January 2017 period. However, it recovered by 6% in the March–April period, with the demand primarily supported by government projects, the rating agency said.