Cement industry to witness a rise in demand

Cement industry to witness a rise in demand
13/12/2016 , by , in ALLIED

Domestic cement industry, which is facing demand constraints post demonetisation, may witness a pick up from January with likely normalcy in liquidity, says a report.

“An abrupt decline in trade segment’s sales volume down by 20-50 per cent on month-on-month basis against the backdrop of demonetisation of Rs 500 and Rs 1,000 notes led to postponement of demand as less availability of cash in circulation brought the construction activities to standstill,” Reliance Securities Research Analyst Binod Modi said in the report.

Demand environment is expected to see a gradual improvement from the fourth quarter of 2016-17.

“Hence, unlike our earlier expectation of demand growth of 5.5 per cent for FY17, we foresee demand growth should be in the range of 2-3 per cent in FY17.

“We expect a strong recovery in FY18 on the back of low base; pickup in infrastructure consumption; improvement in rural demand; and likely traction in government’s ‘Housing for All’ scheme,” he said.

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