Monsoon and GST suppresses demand.
Post implementation of GST suppressed demand from both retail housing and infrastructure projects and the fall-out was a dip in all-India cement prices. Last month alone the all-India average price of a 50 kg bag fell to ₹300. To add to the cement industry's woes was seasonal rains and flooding in most of the large cement-consuming states which also impacted demand to a large degree.
Cement prices have declined by four per cent as cement companies passed on the benefit of lower tax under the GST regime to consumers.
While the demand scenario is likely to remain negative in the current month owing to festivities and an inauspicious period to start new ventures, demand for cement is expected to pick-up in the second half of this month with the revival in rural demand due to a favourable monsoon and acceleration in infrastructure development.
The upcoming assembly elections in Gujarat, Madhya Pradesh, Rajasthan and Karnataka in the next 12-18 months is expected to drive demand due to pre-poll spending.
Cement prices in the north India including Rajasthan, Jammu and Kashmir, Himachal Pradesh, Punjab, Uttarkhand and Haryana fell for the fourth consecutive month due to the monsoon and cement dealers transition from VAT to GST.
Dip in average cement price were as under:
Cement prices have declined by four per cent as cement companies passed on the benefit of lower tax under the GST regime to consumers.
While the demand scenario is likely to remain negative in the current month owing to festivities and an inauspicious period to start new ventures, demand for cement is expected to pick-up in the second half of this month with the revival in rural demand due to a favourable monsoon and acceleration in infrastructure development.
The upcoming assembly elections in Gujarat, Madhya Pradesh, Rajasthan and Karnataka in the next 12-18 months is expected to drive demand due to pre-poll spending.
Cement prices in the north India including Rajasthan, Jammu and Kashmir, Himachal Pradesh, Punjab, Uttarkhand and Haryana fell for the fourth consecutive month due to the monsoon and cement dealers transition from VAT to GST.
Dip in average cement price were as under:
Andhra Pradesh and Telengana down Rs.20-25 a bag to Rs.285-290.
Karnataka and Kerala down Rs.10-12 a bag to 330-335.
Maharastra, Gujarat and Goa down Rs.12-15 a bag to Rs.295-300.
Karnataka and Kerala down Rs.10-12 a bag to 330-335.
Maharastra, Gujarat and Goa down Rs.12-15 a bag to Rs.295-300.
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