Cement pricing on firmer ground

UPTICK SEEN IN JAN ON STRONG DEMAND

- FE BUREAU

THE COUNTRY'S CEMENT sector is signalling early signs of pricing stability heading into the final quarter of this financial year, with leading producers indicating that improving consumption trends and disciplined supply additions could support realisations after a prolonged phase of volatility.

Large cement makers such as UltraTech and Ambuja Cements have pointed to price increases sustaining across markets in recent months, suggesting that the industry maybe entering a more stable pricing cycle. They noted that the December quarter was marked by pricing weakness which analysts say could be because gains from rationalised GST rates were passed on to the customer.

“Pricing has entered January on firmer ground, as we are seeing an uptick in price in January along with double-digit volume growth,’ Vinod Bahety, chief executive, Ambuja Cements, said during the third quarter earnings call.