Cement prices in central India rise

While cement prices across India declined MoM to INR326 (US$4.44)/50kg bag in October from INR328/bag, they significantly increased by INR3/bag in central India as local demand performed better when compared with other regions. Prices increased by INR5-10/bag in Lucknow, Meerut and Faizabad in Uttar Pradesh and remained steady in a few places such as Bhopal. Better demand conditions are supporting prices, said analysts, but they warned that demand continues to be driven mainly by government spending on infrastructure. Meanwhile, prices in the east of the country declined most by INR5/bag to INR330/bag. In the south, they fell by INR4/bag to INR343/bag and by INR3/bag in the north to INR301/bag. The west saw a marginal price increase of INR2/bag, but this was only driven by a few cities such as Mumbai, Pune and Nagpur. Prices in cities such as Vadodara, Surat and Rajkot fell by INR5-10/bag, according to Kotak Institutional Equities.