Cement demand is likely to increase 6 per cent this fiscal from 5 per cent in 2015-16 on the back of better monsoons and government focus on developing infrastructure, rating agency ICRA said today.
“Cement demand growth, which was relatively muted at 5 per cent in fiscal 2015-16 and 3.4 per cent in April-May 2016, is expected to be 6 per cent this fiscal on the back of better monsoons and a pick-up in the infrastructure segment,” Icra Ratings Senior Vice-President Sabyasachi Majumdar said. The expansion is also likely to lead to better prices, especially in the northern and eastern states, which are seeing a good offtake of the key building material, he said. “The pick-up in the infrastructure segment will be primarily in sectors like roads and housing during the next one year. This apart, there is a likelihood of a recovery in the rural demand from the second half of fiscal 2016-17, given the expectations of a better monsoon.