Mumbai: Cement prices in the country have taken yet another knock, of Rs 2-15 per 50 kg bag this time, with the south seeing the biggest drop.
Prices in some southern markets are in fact at their lowest in a year, given a decline of 3-5% in demand. The UltraTech management has acknowledged this, saying the company's performance would have been better had the south done better.
Grade A cement prices in the south are quoting around Rs 245 per 50 kg bag for retail buyers, down Rs 5 over September, while wholesale prices have fallen from Rs 200-210 to Rs 175-190. For builders, prices are around Rs 190-200, though comparative figures could not be obtained.
In eastern India, mainly Kolkata, prices have come down by Rs 3 per bag from September levels. At present, the retail price of cement in Kolkata is Rs 270 and wholesale price Rs 264-266 for Grade A manufacturers such as UltraTech, Lafarge, Ambuja and Binani.
"Cement prices have declined especially in the southern region where we do not supply," said Vinod Juneja, managing director of Binani Cement, which sells its produce in the north and east. "We had increased prices before monsoon and it has dropped to May price levels. We expect a further drop of Rs 2-3 and then prices will stabilise for this year," he said.
Even northern India, whichhas seen heavy infrastructure spending through government disbursals for the commonwealth games, metro rail and other infrastructure projects, has seen a dip of Rs 2-4 per 50 kg bag. Prices are around Rs 230 inDelhi and Rs 220 in Jaipur, saidH M Bangur, president of the Cement Manufacturers' Association of India, and managing director of Kolkata-based Shree Cement, which operates in the northern region.
In the western region, including Mumbai, prices are still more or less at September levels, a senior member of the Cement Stockists and Dealers Association of Bombay said.
However, a cement dealer based out of Sion said that prices on the harbour line in suburban Mumbai, in areas such as Nerul and Vashi, have fallen by Rs 5 to Rs 255 for retail buyers and to Rs 250 for wholesale buyers.


