Cement prices down across India due to monsoon: Jefferies

Cement prices are declining in most markets due to the monsoon, according to a research report by Jeffries. The all-India average prices are currently below the January 2022 average, when the cost pressure was less. The report has also cautioned that high input costs and soft pricing may further weaken the second quarter of the financial year for the sector. The recent price hike comes after a fall in cement prices 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) finalised a report on its investigation into the alleged cement cartelisation in the eastern and southern regions of the country. In East India, the weak cement prices for August, particularly in the Kolkata market, were due to the fight for volumes. There was a price increase of Rs 10 to 15 per bag from September 5 and another Rs 10 per bag increase is expected from the September 15. In West India, the producers have announced a price hike of approximately Rs 20 per bag in Ahmedabad and Pune markets from the fifth to September and there is no price hike announcement in Mumbai. In central India, the cement prices were largely stable in the trade segment, except for a minor decline in the Lucknow market. For South India, the monsoons have been intensifying in the last two weeks of August, and the prices declined by approximately Rs 10 per bag in Bangalore and Chennai. While PET coke cost has eased from the peak, it is still above January 2022, and coal is substantially higher. See also: Birla Corporation to expand cement production capacitySouth sees cement price rise