After the government’s demonetisation move, cement production growth slowed to 0.5% in November and fell 9% in December—taking production growth for the first nine months of FY17 to a mere 2.6%, according to Ambit Capital. Photo: Priyanka Parashar/MintMumbai: Cement production in 2016-17 is likely to see a year-on-year (y-o-y) decline for the first time since 2001 as the 8 November demonetisation hit the building sector, analysts said. “Our channel checks across the country show cement demand, though still weak, is recovering from the effect of this move. It is highly likely this fiscal may end with a marginal y-o-y decline for the cement sector, CLSA said in a 1 March note to clients. “Cement production (as per Index of Industrial Production) declined 13.3% y-o-y in Jan-17 which was the sharpest decline in several months,” it said.

Source: Mint March 05, 2017 22:52 UTC