Cement prices crash as demand contracts

Source: The Hitavada      Date: 16 Oct 2017 09:39:01


 

Business Bureau

THE cement prices in bulk category of leading brands have crashed due to fall in demand. The prices of cement in bulk (more than 1,000 bags) have fallen in the range of Rs 205 per bag and Rs 215 per bag compared to Rs 280 per bag in a fortnight, said sources on the condition of anonymity while talking to The Hitavada on Sunday.
Lower offtake of cement from builders and individual home makers has impacted the prices. To worsen the situation, workers at several construction sites have gone to their native places to celebrate Diwali festival.


Cement manufacturers have adopted a novel practice to inflate the cement prices from first of every month and then lower the prices from the 15th day of month. The leading cement brands include Ultrateck, Ambuja, ACC, Birla, Manikgarh etc.


Furthermore, the real estate sector has not picked up momentum which is also witnessing poor demand for cement in the bulk category. The construction activity has came to a standstill with fewer launches of new projects thereby affecting the demand for cement. “The demand for cement is mostly coming from ongoing Government projects. This alone cannot sustain prices of cement at higher levels as it constitutes a small portion of the overall demand,” sources said.


Also, most home buyers are still waiting to correction in rates of flats post Diwali, sources added.
The construction industry is facing difficulties due to slow down in the economy. This has also affected the demand for housing units.Demand for housing plays an important role in improving the overall demand for cement and more than 300 products required in construction of flat schemes. The construction industry is the number two employer after agriculture, sources further said.