As per the cement channel of Centrum Brooking, there might be an increase in the price of cement in the market.
The cement industry is representing a recovery in the northern regions of India. The dealers of north India have stated there is a high demand for Ultra Tech and Shree Simmons in the market.
Dealers say there has been no noticeable change in the activities of the Adani group since the acquisition of Ambuja and ACC. Ambuja’s business is shrinking as it has not opened this deal for new sales.
Eastern demand has been solid over the past few months and is expected to continue into the summer season. Demand for cement was low during the month of December. Dealers also mentioned the increase in prices of cement bags which is 10 to 15 rupees high as of January and by 30 to 35 rupees in the last four months. These prices are predicted to stay continuous at least for the short term.
What is happening in the American West is encouraging optimism in the cement sector. According to reports, Western demand has exceeded expectations. This demand has been supported by increased housing construction and other infrastructure. Dealers say there is significant demand in the state due to several infrastructure initiatives, and strong residential and industrial demand. They also predict that these prices will remain unchanged, at least for the foreseeable future.
Dealers are also expecting another price increase in the coming weeks after prices in the western region increased by around Rs 15 per bag from last month. Dealers say prices are expected to rise further now and a correction is unlikely in the next two to three months.