Cement prices in May stay firm despite Covid-19 disruptions

Cement prices in May remained stable despite demand disruptions caused by Covid-19 lockdowns and restrictions. This is because cement manufacturers continued to place a premium on price over volume growth. In May, the all-India average cement price increased by 

1.1 per cent to Rs.356 per 50 kg bag. It was a tad lower by 1.3 per cent compared to the previous year level. Following firm prices and a gradual relaxation of lockdown across states, analysts are bullish on cement companies. They believe that concentrating on prices rather than volume 

will result in stable or improved operating EBITDA margins before depreciation and amortisation.