Cement despatches up in February

Cement despatches of The Associated Cement Companies, Larsen & Toubro and Gujarat Ambuja Cements have increased significantly in February 2004 compared with the same month last year.

While ACC's despatches rose 16 per cent to 13.33 lakh tonne in February 2004 compared with 11.48 lakh tonne, its cement production for the month grew 13.5 per cent at 13.05 lakh tonne (11.49 lakh tonne).

L&T's total despatches, including exports, increased 9.7 per cent at 10.9 lakh tonne (9.9 lakh tonne) in February. Domestic despatches rose 9.9 per cent to 10.5 lakh tonne (9.6 lakh tonne).

L&T's combined despatches of cement and clinker was 13.5 lakh tonne in February 2004, compared with 12.7 lakh tonne, a growth of 6.6 per cent.

The company along with its subsidiary Narmada Cement Company produced 11.9 lakh of clinker during the month, compared with 11.1 lakh tonne in January 2003, a growth of 6.6 per cent.

Meanwhile, Gujarat Ambuja Cement registered a rise of 11 per cent in its despatches at 9.69 lakh tonne (8.71 lakh tonne). The company produced 9.54 lakh tonne (8.56 lakh tonne) of cement in the month, reflecting a rise of 11 per cent.

Meanwhile, retail cement prices in Mumbai are likely to rise by Rs 5 per 50 kg bag, while the prices in Gujarat are likely to jump up by Rs 10 per a 50 kg bag.

While prices in Mumbai will stand at Rs 173-175 after the increase in price, a 50 kg bag in Gujarat is expected to be quoted at Rs 160. Domestic cement majors are pushing for this price hike from March 1 on the back of a steady demand.

Cement analysts expect the price hike to be implemented in other parts of Maharashtra by the first week of March.

Senior industry analysts also said that companies are contemplating a Rs 5-10 hike in retail cement prices in the southern markets, especially Tamil Nadu.

A leading cement stockist said, "The cement market in Mumbai and Gujarat have experienced a steady rise in demand in the last two months. However, there was a slight dip in the prices last week by Rs 2-3, which bounced back in this week."

While ruling prices in Gujarat are between Rs 145-150 per 50 kg bag, cement dealers in Gujarat said, "Demand has been on a continued rise in Gujarat with the Ahmedabad market leading the way. We are expecting the 50 kg bag to be quoted at Rs 160 from March 1."

Meanwhile, prices in Rajasthan and Delhi are also eyeing a hike of Rs 5 per 50 kg bag.

Cement dealers in Gujarat said, "Demand has been on the rise in Gujarat and with real estate prices going up, cement prices are looking at firming up."

In Andhra Pradesh, Kerala and Karnataka, prices are hovering around the Rs 160 mark for the 50 kg bag.

Retail cement prices in the east, however, have remained steady at Rs 170 on the back of a demand-supply mismatch.