With the arrival of monsoon season in the region, most of the construction activities here seem to have been moving at the snail’s pace. Work of various mega projects has slowed down while construction of many residential apartments and buildings has been suspended. This has eventually dropped the demand for building material in the markets. Cement is one such commodity which is not in good demand these days and thus its prices have been gradually falling. The prices that were flying high during summer are now diluting so much so that on Monday cement was sold at a price of Rs 240 - Rs 260 (including GST) per bag of 50 kg in bulk buy category against its price of Rs 260 - Rs 280 per bag quoted 15 days back.

 

 

Similarly, in retail category the prices have dropped down to a level of Rs 300 - Rs 310 (including GST) per bag of 50 kg from Rs 315 - Rs 320 per 50 kg bag. Similar fall was seen in mid June when the prices had dipped by about Rs 20 per bag. Cement prices were at its peak in May. The prices were high even in first two weeks of June. However, the prices then started tumbling because of various factors including rainy season. “It is quite normal to see demand for cement falling during monsoon. This is what is happening right now. There is no significant demand for cement form mega projects. Similarly, the retail buyers are also not buying cement because of which the prices are falling,” said one of the dealers on a condition of anonymity.

 

 

Apart from this, the shortage of labourers is also affecting the project. “During monsoon, many labourers returned back to their respective villages and get engaged in agricultural activities. Subsequently work at the projects get hampered and demand for cement and steel dips,” he added. Market observers told The Hitavada that the prices would maintain the price tag for coming days. “It looks like the fall has touched its lowest level of the season. We may not see further dilution. But there are no signs for price hike. It is likely during the Diwali season,” said another dealer, who also preferred not to be quoted.

 

 

Apart from this, he also said that manufacturers based in Southern part of the country are dumping huge quantity of cement bags in Nagpur region which another reason repressible for fall in prices. Sources said that the cement is arriving here from places like Karim Nagar.