Recent dip in cement demand is temporary, says Anil Singhvi of Shree Digvijay Cement

The recent dip in cement demand was a blip and things should start improving from here, Shree Digvijay Cement Ltd Executive Chairman Anil Singhvi has said.

"I think there was some confusion on account of some statements made by the government that along with the steel prices cement prices will correct or come down and I don't think there is any policy change which was warranting that. Also, steel prices corrected, they were expecting cement prices to also come down and that is where perhaps the demand got slowed down because they were not placing orders,” Singhvi said in an interview to CNBC-TV18 on June 15.

Though crude and coal prices have been rising for the last two-three months, the cement industry had not passed even half the spike to customers. If fuel prices cool, the industry would see some better margins in a couple of months.

Even though Ultratech Cement's capacity expansion plan made the street nervous, Singhvi expects a 7-8 percent rise in demand for cement in the fiscal year 2023.