Cement firms hike prices once again

Cement manufacturers have effected another round of price hikes in the last three days, taking forward the trend seen in the last two months.

Prices in Mumbai have risen Rs20 per 50 kg bag, to Rs265 for retail buyers and around `15 less for wholesale.

“In the last one month, cement prices in the west have gone up by Rs30,” a senior official from Mumbai Stockists’ and Dealers Association said.
In Ahmedabad, prices have reached Rs250 per bag.

In the northern region, prices have increased of Rs10 per bag, to Rs230 per bag for retail buyers.

In the southern belt, prices remained constant in Bangalore and Chennai, but Hyderabad saw an increase of Rs5 per bag for trade segment. Prices have increased to Rs250-255 per 50 kg bag in the region.

“The demand is relatively up, but some players are cutting down production because input cost is increasing and dampening the margins,” said Rupesh Sankhe, research analyst with Angel Broking.

But it’s the eastern market which has again come back to dominate pricing. In Kolkata, prices have increased in the last five days to Es280 for retail and Rs274 for wholesale buyers compared with Rs240-245 per bag just a month and a half ago.

“The sale was very high when prices had bottomed, but there have been three rounds of price hike and again it is back at Rs280. Still, the manufacturers say they will look at increasing it further because of the cost pressure,” a dealer said.