India suggests cement demand during October 2012 remained flat MoM implying flat demand YoY. This implies demand rose 7% YoY during the 7 months of FY13. While the first half of the month saw low sales, demand picked up marginally with the onset of the Navratri festival across India, according to Karvy Institutional Research.
With marginal up-trick in pent up demand and with supply discipline remaining intact, cement prices firmed up MoM across most regions. Cement prices rose in the northern and eastern regions by Rs 5-15 a bag.
Prices remained mostly flat in the western region while the southern region witnessed mixed trend.
Dealers suggested that cement prices could increase over the next two months as demand improves and should remain steady over the next one month. In near term, the NCR, Andhra Pradesh and Western region is expected to see price hikes by manufacturers, it said.