Indian cement prices to improve in FY15

According to ICRA research, Indian cement prices are expected to improve going forward. The demand outlook for FY15 remains favourable as a result of the new government's focus on infrastructure spending.

Wholesale cement prices in the northern and western regions came under pressure in 2Q15 due to monsoons, and recovery in prices has been slow ever since. Cement manufacturers increased prices by Rs.5 – 20/bag in October 2014; however, prices came under pressure again in November and December due to a slow recovery in demand.

According to ICRA, average wholesale cement prices in Delhi fell from Rs.290/bag in July 2014 to Rs.268/bag in September 2014. Following the monsoons, prices increased to Rs.288/bag in October, but declined to Rs.260/bag in November and Rs.253/bag in December 2014.

Despite this, cement prices in the North have witnessed some recovery in January 2015. In the South, prices remained largely stable following the hikes in June 2014. Prices remained in the range of Rs.300 – 310/bag in Hyderabad until October 2014, but again increased to Rs.321/bag in December 2014.

According to ICRA, the price increase has been sustained throughout January 2015. Prices in the eastern markets have remained fairly stable during this financial year.

Edited from various sources by Rosalie Starling

Sources

• Business Standard
• Indiainfoline

Read the article online at: https://www.worldcement.com/asia-pacific-rim/11022015/indian-cement-prices-to-improve-in-fy15-318/