Stocks of cement companies may come under pressure this week as prices have fallen about Rs 15-20 for a 50-kg bag last week in Karnataka, Maharashtra and Tamil Nadu. The slide was quite sharp in Andhra Pradesh: a 50-kg bag has lost between Rs 20 and Rs 25 to hover around Rs 270-275 a bag. Sudden excess capacity created in the market with the launch of new brands — Jaypee Cements, JSW, Jaya Jyothi and Bhavya and slackening of demand seemed to have impacted the price. With August-September normally considered lean months for cement, the price may fall even further going ahead. Particularly, southern-based companies’ stocks such as India Cements, Sagar Cements, Andhra Cements, Deccan Cements and Madras Cements will be under watch.

(This article was published on August 19, 2012)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.