Realty projects increase cement sales in May
By Our Real Estate Bureau
June 10, 2010
Surging demand
for cement from infrastructure and a fall in prices have increased
cement sales in May.
There has also been greater offtake from large real estate
projects.
Meanwhile, cement companies with pan-India presence registered a
marginal fall in despatches month-on-month due to a fall in demand
in the southern region which saw maximum capacity addition to the
tune of 25 million tonnes.
Cement prices, on an average, have fallen by Rs3-5 a 50-kg bag
across regions in May.
However, the expected slowdown in capacity addition and revival in
demand may stop a further fall in prices.
The installed capacity of the industry was about 260-million tonnes
in the financial year 2010 against 219-million tonnes last fiscal.
Capacity utilisation was down to 84 per cent in the financial year
2010 from 88 per cent in the financial year 2009 due to significant
capacity addition in relation to demand.