Construction Industry News
According to a research report by Jeffries, cement prices are falling in most markets as a result of the monsoon. Average prices across India are currently below the January 2022 average, when cost pressures were less.
The report also warned that high input costs and soft pricing could further weaken the sector's second quarter of the fiscal year.
The recent price increase comes after cement prices have fallen by Rs 40 to 60 per bag since May 2022. The dealers have also indicated that there is pressure on prices due to the newly commissioned clinker capacity by Shree Cement, UltraTech and Dalmia.
Earlier in July, the Competition Commission of India (CCI) finalized a report on its investigation into the alleged cement cartel formation in the eastern and southern regions of the country.
In East India, weak cement prices for August, particularly in the Kolkata market, were due to the volume struggle. There was a price increase of Rs 10 to 15 per bag from September 5 and another increase of Rs 10 per bag is expected from September 15.
In Western India, the producers have announced a price increase of about Rs 20 per bag in the Ahmedabad and Pune markets from September 5 to September and there is no announcement of price increases in Mumbai.
In Central India, cement prices were broadly stable in the trading segment, with the exception of a slight decline in the Lucknow market. For South India, monsoons intensified in the last two weeks of August and prices fell by about Rs 10 per bag in Bangalore and Chennai.
Although the cost of PET coke has decreased from peak, it is still above January 2022 and coal is significantly higher.
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