Asia / Oceania
Cement firms in India slash prices on construction slowdown
May, 07 2012
(India) -- Indian cement companies have slashed their prices across the country before the onset of the monsoon period to boost the low demand expected towards the end of the busy season.
“In the western region, prices have declined Rs 10-15 per 50-kg bag while in the north and south, the prices have declined by Rs 8-10 per 50 kg bag. In the eastern region prices continue to be stable,” a cement stockist and president of dealers association said.
Cement companies in the western region have cut prices by Rs 10-15 per 50 kg bag while in the north and south, prices have been lowered by Rs 8-10 per 50 kg bag.
Vinita Singhania, managing director J K Lakshmi Cement explained that the demand in April was affected due to several reasons.
“While there is a shortage of labourers due to which there could be a slowdown in construction activities certain infrastructure projects have also not come to place. Prices have started falling due to these reasons. This year we are expecting growth of around 6-7 per cent as compared to double digit increase in demand in previous years. It is much below our expectations.”
A senior official from Ambuja Cement said, “Before the onset of monsoon labourers go back to their native places and construction activity slows down. Due to labour shortage construction activities has slowed down which may be the reason for decline in demand.”
A senior official of cement manufacturers' association said that this year cement prices have declined even before the arrival of monsoon due to over-supply situation in the market. “This year the price correction has come little earlier than expected as demand didn’t pick up in line with our expectations.”
Vinod Juneja, managing director, Binani Cement, said prices are expected to correct further with the onset of monsoon.
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