The cement sector was discussed on CNBC TV18 today.
Companies in North India seem to be doing well, but there are serious oversupply problems in the South.
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In North India, average prices are at Rs 250/bag. Prices in North-east are at Rs 300 per bag in some pockets." He expects an uptick in prices for the next three months. Price gap between South, North is large. Average prices in South India are at Rs 160 per bag, he added.
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Source.
No doubt the supply-demand situation is better in North India, but some part of the price difference exists because of short-term factors like demand from Commonwealth games projects and scarcity of wagons.
In the long-term, the price gap between North and South will narrow down.
Till then, north-based companies like Mangalam Cement can enjoy the high prices in the region...
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