Cement firms to jack up rates in Gujarat

Price revision expected in Mumbai too

Retail cement prices in Gujarat are heading for another round of upswing, with major cement companies Gujarat Ambuja, The Associated Cement Companies, Larsen & Tuobro planning a Rs 10 hike from 20 December, taking the ruling prices to Rs 130 per 50 kg bag. Another round of heavy price revision is expected in the Mumbai market as well.

Cement makers had increased retail cement prices in Gujarat by a steep Rs 20 per 50 kg bag last Saturday. Industry sources said, "The price hike implemented last week has sustained as demand has picked up. The Gujarat market remained depressed even after the monsoon, therefore the prices are likely to be northward bound in the next few weeks."

A leading cement stockist said, "The companies are also targeting a price increase of Rs 15 per 50 kg bag price rise in the Mumbai market shortly. They are trying to push prices to the Rs 175 per 50 kg bag level by January. Retail cement prices could see a rise of Rs 5 in Mumbai at Rs 165 per 50 kg bag by this weekend, he added.

Cement dealers supplying to the Gujarat market said, "The expectation of prices rising has led to a slight panic in the market with retail cement consumers buying more in anticipation." The companies are reportedly restricting supply in the Gujarat market to push prices.

The entry of a new player in the form of Sanghi cement had created over supply in the Gujarat market leading to a steep decline in prices.