Realisations still under pressure for cement firms as demand remains muted

With growth having shrunk 0.5 per cent year-on-year during FY20 so far, as per latest estimates, price recovery seems distant

The declining trend in cement prices has not seen any respite in November, even as demand remains elusive. While expectations of some uptick in demand after the end of the festive season have been belied, the average cement prices have remained under pressure in the absence of recovery in demand. 

Analysts’ channel checks suggest that pricing is under pressure month-on-month (MoM), compared to the previous quarter. All-India retail cement prices were down by 2 per cent MoM during November, suggests Centrum Broking’s channel checks. Cement demand in October 2019, according to the latest official data, has shown a decline of