ACC, Gujarat Ambuja up prices in Mumbai by Rs 5

ACC and Gujarat Ambuja Cements on Tuesday raised cement prices by Rs 5 per 50-kilogram bag in Mumbai, company officials said. Post-hike, the retail prices of Gujarat Ambuja and ACC will be Rs 153 and Rs 155, respectively. Cement dealers said UltraTech Cement Ltd may follow suit.

On Monday, these three companies had deferred a hike on fears the prices may not be sustainable with demand remaining subdued.

Analysts still doubt the sustainability of the prices.

"There is no remarkable pick-up in demand in Mumbai and with prices in Gujarat also not looking up, it may be difficult for the companies to hold the price hike," said an analyst with a domestic brokerage.

Analysts also said that the cement makers might have to resort to controlling supplies to sustain the increased prices.

However, company officials refused to comment on the issue. At present, cement prices in Gujarat are in the Rs 105-110 a bag range. Cement stockists are expecting a price hike in Gujarat only by month-end.