MUMBAI : The economy may be contracting and demand has been hit across sectors but the key ingredient that powers the construction sector has managed to defy logic.
Channel checks by analysts at three domestic brokerage firms show continued strength in cement prices in June.Cement producers raised prices by a notable 6% in early May to make up for the sharp fall in sales and negative operating leverage.
And as the government eased restrictions in May, demand returned, and as it turns out producers have maintained the price hikes.“Cement prices increased by 0.8% month-on-month in June 2020," analysts at IDBI Capital Markets & Securities Ltd said in a note. “In FY21 so far (i.e.