How will cement prices move going forward? Haven prices in the eastern region moved up considerably?
Price peak was in first week of June. From July, prices have been slipping in almost all the markets. A Rs 2-5 per bag slippage is there in most of the markets. Prices in the eastern region have risen more because the base price was low, but absolute price-wise Mumbai is still higher than Kolkata. Material from southern market has also started coming in the eastern zone so prices will correct very soon. Prices in the northern market will not go up, they have to come down. It’s a matter of time. Prices going up is not a fact and if we take a 5-, 10-, 15-, or 20-year average, the price of cement has maintained pace with the inflation. The ratio of inflation index to cement price index is 1:1. Where is the demand pick-up more — infrastructure, rural, or the urban market? The demand for housing has risen because of the free cash available with people. Need of housing is enormous. The loan waiver last year gave free cash flow to farmers. It is one year or so for that now and the demand has
