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Thursday, June 20, 2024

Demand moderation prevents excessive cement price hikes

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In Short:

Cement demand in India remains steady with slight improvements expected in June due to construction activities picking up. Price hikes are being attempted but doubts remain regarding sustainability. Labour shortage, elections, and upcoming monsoons are factors affecting demand. Prices have declined in various markets, with some regions experiencing stability. Overall, recovery in the cement sector is expected in the second half of the year.

New Developments in Cement Industry Across India

Hey there folks, let’s talk about the latest updates in the cement industry in India. The demand for cement has been moderate across the country, with efforts to increase prices not yielding the expected results so far.

Challenges Faced

Market representatives have cited extreme heat and a shortage of labor due to the recent elections as factors affecting cement demand and prices in April and May. However, there is hope for some movement in June as construction activities pick up.

Looming Challenges

A cement manufacturer mentioned that despite the elections being over, labor shortage is expected to persist, particularly with the beginning of the harvest season.

Price Check

Research firm Anand Rathi highlighted concerns about the sustainability of price hikes in different regions, considering factors like monsoons, labor shortage, high temperatures, and liquidity constraints.

According to Axis Capital, cement prices have declined compared to the previous year and quarter, with some cement companies expecting a better pricing scenario in the second half of the year.

Market-specific Insights

In various regions of India, cement prices have remained stable or even decreased due to factors like poor demand and labor unavailability. However, there are expectations of a demand uptick in June, especially in pre-monsoon construction activities.

Overall, the situation in different markets like Bengaluru, Chennai, Hyderabad, Delhi, Kolkata, Patna, and Mumbai varies, with some areas seeing price declines and others anticipating a demand surge in the coming months.

So, while the cement industry faces challenges like labor shortage and price fluctuations, there is hope for improvement as construction activities pick up. Stay tuned for more updates on the cement sector in India!

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