Oversupply and poor offtake has resulted in the cement prices falling by Rs 15-23 per bag in South India in the first 15 days of November.
Hyderabad has been the worst hit, where prices fell by 15 per cent. Price of cement in Andhra Pradesh is now around Rs 135 per bag and around Rs 160 in Tamil Nadu and Karnataka. Over all the cement prices in the south are down 40-42 per cent from the peak levels in April.
The political instability in Andhra Pradesh since September, low infrastructure spending in Karnataka and Kerala and the onset of retreating monsoons in Tamil Nadu are responsible to keep demand in the south low for the next six months.