Along with the pick-up in construction activities in the country and global instability, the impact of rising petrol, diesel prices can also be seen on cement prices. According to a research report by Care Ratings, the demand for cement has remained strong during the last financial year. This uptrend is likely to continue in the coming days as well. Prices can also be seen at higher levels according to the increasing demand.
According to the data, in the financial year 2021-22, the cement sector has seen the highest ever growth of 20 percent. At the same time, it had a decline of 11 percent in its last financial year. It has been told in the report that this increase is being seen due to the infrastructure work of the government running in the country.
increase in demand
In the first quarter of the last financial year, the demand for this sector saw a growth of 54 percent. This trend continued with a growth of 22 per cent in its next quarter. In the third quarter, it witnessed some decline due to restraint in construction activities in Delhi NCR. However, after that there was a rise of 13 percent once again in the fourth quarter.
Rural house construction in the country as well as infrastructure activities in central and south India have fueled the demand. On the other hand, demand has remained in a range in the eastern and western regions.
This will be the trend of price
According to the report, All India Retail Cement Price has remained high for the entire financial year 2021-22 except December. In the month of December alone, it was seen at a low of Rs 349 per bag. However, after this, it has seen an increase of 23 percent in the fourth quarter of the financial year.
According to experts, the main reason for the rise in prices is the Russia-Ukraine war and rising oil prices. These factors affect the cost of production of cement. In the coming days also, it is feared that the prices will remain high.
The trend of demand for cement in the financial year 2022-23 is pointing towards an upward trend. Also, in the short term, there will be increasing cost pressure on cement producers and they will pass on the burden to the customers. However, the good thing will be that this increase in prices is not likely to be much given the fierce competition of the companies.