Less demand weighs on cement prices

Research firm, Emkay Global Financial Services has come out with its report on cement space. The firm remains positive on Grasim, Shree Cements and Madras Cements.

According to the firm all India cement price was at Rs 289 per bag, declined by sluggish demand due to festive season. India's central and northern regions witness steep decline in prices of 5.5 per cent and 5.3 per cent respectively followed by East -3.7 per cent and West - 2.6 per cent.

Prices in the southern region remained flat vs expectation of further bounceback in AP. However cyclone Nilam impacted Andhra Pradesh demand restricting bounce back of prices, strike in Kerela by the dealer association disrupts the demand scenario in the region.

Demand now remains a key driver as it has finally started weighing down on prices & any hikes expected in Dec & Jan would have to be supported by a healthy demand growth.