The domestic cement industry is likely to see better growth in May compared with April. Though prices of the commodity remained under pressure throughout the month, in some parts of central India and eastern states have shown better demand than the last month.
According to industry analysts, demand growth may be 9-10 per cent, according to the initial figures announced by some of the cement majors on Tuesday.
However, they added the real picture would emerge only when numbers for the entire industry.
| GOING NORTH Sales of top cement makers in May | ||
| Company | Despatch | Change (%) |
| Ambuja Cements | 1.86 | 13.41 |
| Birla Group | 3.35 | 5.59 |
| Shree Cement | 0.84 | 15.07 |
| Jaiprakash Associates | 1.32 | 62.96 |
| JK Lakshmi | 0.36 | 14.11 |
| All figures in million tonnes Source : Companies | ||
In April, the industry could manage growth of only 8.56 per cent, which surprised industry analysts.
The Cement Manufacturers’ Association (CMA) will release the industry’s statistics next week.
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The southern market, said industry experts, not witnessed good growth as price corrections were more severe in the region.
“Cement dealers have indicated that the central region including Madhya Pradesh and Uttar Pradesh have shown better outlook,” said analysts.
Hari Mohan Bangur, chairman and managing director of the northern major, Shree Cement, said, “The demand in north has been good in May. Whatever we produced was easily used.”
Ambuja Cements, part of the Swiss major Holcim, sold 13.4 per cent more cement in May at 1.86 million tonnes whereas Birla group, comprising Samruddhi Cement and UltraTech Cement, despatched 5.6 per cent more at 3.35 million tonnes.
The north central major, Jaiprakash Associates, despatched 63 per cent more cement in the month at 1.32 million tonnes.
In May, cement prices corrected by as much as Rs 15 for a 50 kg bag.