Cement prices may go up by Rs 3-5 per bag
in October
in October
AFTER a lull of two months, cement prices are likely to go up by Rs 3-5 per bag in Mumbai, Delhi-NCR, Gujarat and the southern markets from October 1. Post this round of hike, prices will be hovering around Rs 245-275 per 50 kg bag. Cement prices have gone up by 4% in the past one year.
Cement makers attribute the hike to rising raw material prices and higher transportation costs. The companies which are expected to hike prices include ACC, Ambuja, JK Lakshmi and Binani.
Binani Cement MD Vinod Juneja told ET: "Prices may go up in the next quarter by Rs 3-5 per bag due to rise in input and transportation costs. The spurt in the prices of raw materials have eroded margins." Binani Cement has presence in Rajasthan and western market. The prices of coal — one of the main raw materials — have gone up by 60% in one year, he added.
Cement Manufacturers' Association president and Shree Cement managing director HM Bangur said: "Price of any particular commodity is determined by the market forces. Cement prices are likely to go up in the end of monsoon." Shree Cement has strong presence in northern region including Delhi, Himachal Pradesh and Haryana.
Analysts said the demand for cement has gone up in Delhi and NCR due to the construction works for the Commonwealth Games. "This is one of the reasons for the imminent price hike," they added.
However, cement prices in India are expected to fall in the longer term, when new production capacities will be added in the second-half of 2009.
mithun.roy@timesgroup.com
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