Cement makers hike prices by Rs 5-8/bag
The Economic Times, March 4, 2009, Page 9
Mithun Roy MUMBAI
BUOYED by an improved demand, cement makers have raised prices by Rs 5-8 per 50 kg bag in Mumbai and Gujarat from Sunday, defeating the government move to pull down cement prices by cutting down excise duty.
After the hike, retail cement prices are hovering around Rs 240 per bag in Mumbai and Gujarat, said cement dealers. However, there is no change in prices in other parts of Mahararashtra, they said.
Sanjay Ladiwala, president of Bombay Cement Dealers and Stockists Association, attributed the price hike to surge in demand and shortage of wagons. Ambuja Cements’ marketing head Ajay Kapur said the marginal increase in prices took place due to sudden escalation of demand from the government and infrastructure projects. “Developers are in a hurry to finish their projects as the financial year is drawing to an end,” he added. The real estate sector accounted for almost 55% of demand for cement in India.
HM Bangur, president of Cement Manufacturers’ Association and managing director of Shree Cement, said: “We have passed on the excise duty relief to consumers and prices are stable in the north and fell in the east parts of the country.” He declined to comment on the price hike in Mumbai and Gujarat.
Dealers said cement prices remain stable—Rs 215 to Rs 230 per 50-kg bag—in the southern and northern markets while prices have come down in the eastern markets after the recent 2% cut in excise duty on bulk cement.
Industry experts don’t expect cement prices to soften in the short run as the demand has been growing at over 5%. Over the longer term, however, they expect prices to fall, as new capacities come up for production. The outlook for the January-March quarter looks better than what it was a year ago, as cement dispatches have started going up, said an analyst with a domestic brokerage firm.
ACC’s dispatches in February were up 4% year-on-year at 1.75 million tonnes against 1.69 million tonnes in the same period last year. Production rose 3% to 1.74 million tonnes compared to 1.69 million tonnes last year.
The Economic Times, March 4, 2009, Page 9
Mithun Roy MUMBAI
BUOYED by an improved demand, cement makers have raised prices by Rs 5-8 per 50 kg bag in Mumbai and Gujarat from Sunday, defeating the government move to pull down cement prices by cutting down excise duty.
After the hike, retail cement prices are hovering around Rs 240 per bag in Mumbai and Gujarat, said cement dealers. However, there is no change in prices in other parts of Mahararashtra, they said.
Sanjay Ladiwala, president of Bombay Cement Dealers and Stockists Association, attributed the price hike to surge in demand and shortage of wagons. Ambuja Cements’ marketing head Ajay Kapur said the marginal increase in prices took place due to sudden escalation of demand from the government and infrastructure projects. “Developers are in a hurry to finish their projects as the financial year is drawing to an end,” he added. The real estate sector accounted for almost 55% of demand for cement in India.
HM Bangur, president of Cement Manufacturers’ Association and managing director of Shree Cement, said: “We have passed on the excise duty relief to consumers and prices are stable in the north and fell in the east parts of the country.” He declined to comment on the price hike in Mumbai and Gujarat.
Dealers said cement prices remain stable—Rs 215 to Rs 230 per 50-kg bag—in the southern and northern markets while prices have come down in the eastern markets after the recent 2% cut in excise duty on bulk cement.
Industry experts don’t expect cement prices to soften in the short run as the demand has been growing at over 5%. Over the longer term, however, they expect prices to fall, as new capacities come up for production. The outlook for the January-March quarter looks better than what it was a year ago, as cement dispatches have started going up, said an analyst with a domestic brokerage firm.
ACC’s dispatches in February were up 4% year-on-year at 1.75 million tonnes against 1.69 million tonnes in the same period last year. Production rose 3% to 1.74 million tonnes compared to 1.69 million tonnes last year.
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