Cement stocks slip amid weak prices, demand concerns

Shares of cement stocks are under pressure in opening trades on Wednesday as prices are likely to ease and slowdown in demand following the onset of monsoon rains.

Shares of cement stocks are under pressure in opening trades on Wednesday as cement prices have eased and concerns over slowdown in demand following the onset of monsoon rains.

Sluggish demand from construction sector is likely to pull down cement prices in India in short term. The industrial commodity witnessed a Rs 25 a bag (50 kgs each) fall in prices on m-o-m basis in West Bengal as against Rs and Rs 10 a bag in Vidarbha (Maharashtra) region and elsewhere in the country respectively.

Demand of the construction raw material generally declines in the lean monsoon season when most of running overhangs. Since, the sentiment continues to remain poor over the last few months, there is little room for a revival in demand in the upcoming monsoon season.

Among the cement majors ACC was down 1.4% at Rs 1,201, Ambuja Cements slipped 1.2% to Rs 173, UltraTech Cement was down 0.6% to Rs 1,850.