With the end of the monsoon season demand for cement has surged with large cement makers clocking double digit growth in dispatches.
ACC has managed to sell 14% more cement in October at 1.92 million tonne while production for the month rose 16% to 1.98 million tonne. Ambuja Cements also reported 20% growth in dispatches with a 17% rise in output. However, the Aditya Birla Group outpaced the formers with a 21% growth in sales and 18% increase in output for the month.
The pent up demand from infrastructure projects under execution and also a pick up in housing, post the rains helped demand to spurt and the industry expects the strong growth to continue until March.
But, contrary to the usual trend, this would not lead to price rise but indeed may weaken. Expert opined the improved offtake will lead to higher capacity utilization and on the back of recent three price hikes of which two were well absorbed, going forward prices are likely to come under pressure, as most companies will try to maximize their production.
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