As per to the sources saying @ the www.propertykhazana.com, downturn in housing and commercial segment has accounted for 70% of the total cement use in India which impacted the cement segment. As most builders are experiencing dour cash chomp, it is rare that more realty development will take place in the future and IT/ITES sectors account for 3/4th of commercial space across India and less growth in employee staffing for the segment shall interpret into subdued demand for cement. Cement exports have reduced from about 12 Million Tonne (MT) in Fiscal year to 2.5 MT among April and December on report of extra ability and realty downturn in Middle East region which is the main export market of Indian cement producers. Demand for cement might be measured from the country’s economic act, usually averaging for about 2 times the GDP growth.
Considering that India’s GDP will grow to about 7% and 6.5% in Fiscal Year and forecasters believes that demand for cement will raise about 8% and 7.5% as predicted before. An addition ability of about 95-100 MT is likely to be added by the end of the fiscal year and this will result in an extra of about 11 MT and 40 MT in the coming Fiscal years.
Forecaster of Religare Hichens & Co. said to www.propertykhazana.com that, “We thought that with the ability situation fated and demand declining on account of realty downturn, will further cut the rates alike in the previous Fiscal year.” All India average cement rates stand at Rs. 240 per 50 kg bag and has divided a subsidiary reduce in realizations during 4th quarter in the Fiscal year, followed by about 10-15% reduce in rates.
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