Cement prices surge down south

Cement prices, which saw their steepest fall in the last few months of last year, are now seeing a recovery. Leading the upmove is the southern region, which had seen the biggest drops.

In Chennai, cement prices have shot up by Rs 30 in the last three weeks and are set to go up by Rs 10-15 more from January 15 or 16, dealers said.

“The builder price is Rs 165-170 for Grade-A cement players and wholesale is at Rs 190-220 per 50 kg bag. Retail is around Rs 210-220 depending upon the brand,” a dealer said.

Another dealer expects wholesale prices to touch Rs 230-235 per bag in the next 10 days and retail prices stabilising thereafter.
The rise is puzzling, given that no major uptick in demand is visible.

Going by sources, the dealers are holding on to their stocks in anticipation of a price hike. Apparently, the Chennai government has signed some infrastructure contracts, which would increase cement consumption by more than 3 lakh tonne.

Hyderabad, where cement prices had bottomed out, has also seen an upward movement. Retail prices in the city are in the region of Rs 170-175 and wholesale prices at Rs 150-170 per bag.

Andhra cements and India Cements are among the major players in Andhra Pradesh.

Dealers said there has been a slight pick-up after the setback last month on account of the Telangana issue. They expect a temporary price hike to continue for sometime.
Prices in the western region are upbeat, too.

In Mumbai, cement makers have increased prices by Rs 10 since January 1, ushering in the New Year with a new rate card.

“The price of wholesale cement is Rs 250 and for projects Rs 240 per 50 kg bag. Retail prices are around Rs 265, plus or minus Rs 2, depending on the brand,” a senior official of Mumbai Cement Stockists and Dealers’ Association said. “Prices will be strong till May and they could continue to go up further.”

Up north, in the Delhi-NCR region, wholesale prices are at Rs 225 for ordinary portland cement and Rs 215 for portland pozzolana cement. Despite a phalanx of projects for the Commonwealth Games and other infrastructure projects, cement prices in the region haven’t moved much.

Vinod Juneja, managing director, Binani Cements, however, said, “In Delhi and Rajasthan, prices are around Rs 240-250 and it’s going strong.”

Incidentally, the only market to have firmly held on to prices — the eastern region —- has seen a drop in prices.

In Kolkata, the wholesale price is Rs 260 and retail price Rs 265-270 per bag, down Rs 5 in both segments.