Cement, steel prices soften in Mumbai

Demand for cement had outstripped supply for the last five years. However, with the slump hitting the real estate sector — a key driver for cement demand — and monsoon slowing down building and construction activity, demand has taken a beating over the last two months.

“This year pace of new construction projects is very slow. The average growth rate of cement demand in Mumbai is 12 per cent while supply has always been limited. This year demand has fallen while supply is higher,” said Sanjay Ladiwala, president of Cement Stockists & Dealers Association adding that a further slackening of demand is expected.