PTI reported that India's cement sector is likely to witness negative growth in sales in October 2011 due to a slowdown in infrastructure construction activities amid the festive season, besides the higher base in the corresponding month of 2010.

Elara Securities said in a report that "Given last year's higher base and the upcoming festival season of Diwali, the cement industry is expected to report negative year on year growth in dispatches for the month of October 2011."

In September 2011, the country's cement firms reported a marginal 1.4% decline in dispatches vis a vis the same month last year. In August 2011, cement dispatches were down by 6.6% in comparison to July.

Industry sources said that the unavailability of sand has impacted cement off take in the Western region, while the monsoon and the fluid political situation hit sales in Andhra Pradesh. It added that "As cement demand is still subdued, cement players have cut down supply in the low price non trade segment. Thus, cement prices during the month increased in most parts of the northern, eastern, western and central regions by INR 5 to INR 30 per 50 kilogram bag."

Cement prices in the southern region (except Andhra Pradesh) remained flat, as cement demand was weak due to festivals like Onam and Dussehra. Prices in Andhra Pradesh have inched up by INR 10 per bag due to the Telangana agitation.

Elara Securities said that "Cement dealers expect prices to inch up further by INR 5 to INR 10 per bag in most regions."

(Sourced from PTI)