Cement demand is expected to increase with the start of festival season, and prices have been increased across regions for the first time after the monsoon.

Prices in the north and eastern regions have gone up by ₹5 a bag, and in the West, it increased by about ₹10 a bag while prices in Central region remained stable. However, prices in the southern region fell by ₹25-30 a bag as it could not sustain the previous month's hike of a similar amount.

Cement sales growth in the first half of this fiscal was up by a meagre one per cent compared to last year due to prolonged monsoon and slowdown in government projects.

Pricing and demand are expected to improve after Diwali, said a dealer.

Sales growth in this fiscal is expected to be around three per cent, he said.

Trade prices in the north averaged about ₹335 a bag due to weak demand

Despite the festival season, dealers expect price decrease by ₹10 a bag to about ₹330 in Central region due to persisting weak demand.

Prices in the Western and eastern regions may go up by ₹5-20 a bag to about ₹325 on the eve of pre-Diwali demand pick up.

Trade prices in the south remain weak and average at about ₹325-335 a bag due to slowdown in government projects, floods and non-availability of sand.

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