BQ Survey: Cement Prices Fall For Fourth Straight Month

All-India average cement prices marginally dipped by Rs 2 month-on-month to Rs 338 for a 50-kilogram bag in September, according to the survey of 15 dealers across five regions.

The price cut on a pan-India basis was cushioned by a big price hike in the southern region. The price cut was the sharpest in North and East. The central region continued to show resilience in the absence of any substantial capacity addition.

North

Cement dealers reduced prices for the fourth consecutive month in September as demand continued to remain dull in the region. Dealers, however, expect demand to recover in October and help sustaining the current price levels.

Average price in north India dropped to Rs 335 per bag.

South

The region remained the only outlier. Cement prices in the region were raised by Rs 20 per bag at the start of the month, according to four dealers.

The price hike comes after five consecutive months of decline. However, a rollback looks likely given the weak demand scenario and dumping by bigger cement companies.

Average price in south India jumped to Rs 325 per bag.

East

Cement dealers slashed prices by Rs 10 per bag as the region continues to face tepid demand due to shortage of labour ahead of the festive season in cities like Kolkata. Cement prices in east fell by Rs 5 per bag twice this season. Dealers, however, expect a recovery due to resumption of construction activity after Diwali.

Average price in east India dropped to Rs 310 per bag.

West

Cement prices in the region fell by Rs 5 per 50 kg bag as monsoon rains led to a demand slowdown.

This comes even as dealers sounded off the possibility of a price hike of Rs 5-10 per bag earlier this month.

Cement producers in Maharashtra cut prices by a big margin whereas prices remained stable in Gujarat. Average price in west India dropped to Rs 325 per bag.

Central India

Cement dealers in the region cut prices by Rs 3 per bag. While prices declined by Rs 5 per bag in Madhya Pradesh, there was hardly any change in Uttar Pradesh. Prices were aided by the absence of any substantial capacity addition in the region.

Most of the surveyed dealers expect pricing power to pick up momentum after Diwali.

Average price in central India dropped to Rs 366 per bag.