Cement Price Updates
Cement Prices
The cement industry is seeing some demand recovery now that lockdown is being lifted in many states.
According to a Kotak Institutional Equities (KIE) Ltd report released recently,
“Rural and pent-up demand has led to higher-than-expected volumes in May-June 2020 and the industry could just suffer nearly 40% year-on-year decline in 1QFY21E volumes, better than earlier expectations,".
Against this background, cement prices, however, have seen moderation. The Kotak Institutional Equities (KIE) Ltd report stated "Our dealer checks suggest all-India cement prices have declined by 3% to ₹369/bag in June 2020 with easing supply-side constraints after a sharp 10% month-on-month increase in May 2020".
However Indian Cement Industry insiders have across the board stated that Cement prices are likely to be on the higher side for Cement companies to break even given the current economic situation.