Edelweiss Securities report on cement sector for the month of April, 2017, indicates a demand push mainly in the eastern and some pockets of north / west markets in India. The report also points to the possible supply constraints in some markets which are suddenly witnessing scarce flyash/wagon shortage as and when regulatory tightening on overloading takes effect. The theoretical demandâsupply gap could be in the range of ~15-20%, the practical gap is far shorter and in busy months the bargaining power moves to producers, implying that the sector is clearly on recovery path. This may take 12-18 months, but margins at cyclical lows would soon start recouping.