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| Cement may weaken in second half, says CMIE |
| Press Trust Of India / Mumbai Sep 23, 2009, 00:43 IST |
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Cement prices are expected to weaken across cities in the second half of 2009-10, Centre for Monitoring Indian Economy (CMIE) said in its monthly report.
“Cement prices are expected to weaken in second half of 2009-10 as 35 million tonnes of fresh cement capacity will come onstream, which will put pressure on the realisations of companies,” CMIE said.
The southern region, which would add around 19 million tonnes of new capacity, would witness the maximum pricing pressure. In the north, infrastructure development activity for the Commonwealth Games in 2010 would keep the demand strong and restrict price fall, it said. In fact, the cement prices softened in August after being on an uptrend for six consecutive months.
In the Mumbai market, average wholesale prices were ruling at Rs 257 per 50 kg bag, Rs 3 lower than the high of Rs 260 per bag. The cement prices was ruling at Rs 253 per 50 kg bag in August 2008. It went up to Rs 260 per bag in May and June 2009. In the south, prices fell in the range of Rs 4-12 per bag. However, prices continued to rise in the north and the east due to a strong demand.
CMIE said the leading cement producer ACC’s production is expected to grow by nine per cent in FY 10 driven by a strong demand from the infrastructure projects and housing construction.
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