Cement prices look up Rs 25

The domestic cement industry has witnessed a price increase in the range of Rs 10-25 across major markets.

Retail cement prices in Gujarat today jumped up by Rs 25 per a 50 kg bag to Rs 140, an increase of more than 20 per cent. Prices in Gujarat had remained depressed in the last few weeks on account of an oversupply situation, even as prices in other regions improved.

A cement sector analyst said, "It was difficult for companies to sustain at a low price level of Rs 110-120 for a long time. With demand picking up in these regions after the festive season, major players have announced a price hike."

Key cement players in Gujarat are Gujarat Ambuja Cements, UltraTech Cement and Sanghi Cements.

Gujarat Ambuja Cements, which holds a 22 per cent share of the Gujarat market, has recorded an 11 per cent rise in its monthly despatches for December.

UltraTech has a 25 per cent share of the Gujarat market, while Sanghi has an 18 per cent share.

In Mumbai, retail cement prices have increased to Rs 172-175 for a 50 kg bag, a Rs 3 hike. Prices in neighbouring regions of Pune and Nagpur have also increased between Rs 3 and 5.

Retail cement prices in Karnataka and Kerala have also risen between Rs 10-15 per 50 kg bag to Rs 155-160. Prices in Uttar Pradesh and Madhya Pradesh are also up by Rs 15 per a 50 kg bag to around Rs 160.

Meanwhile, prices in the eastern region have remained stable at Rs 175-180 per 50 kg bag.