Cement prices may go up by Rs 4 a bag in Mumbai

Trend not expected to spread to other parts of the country

Retail cement prices in Mumbai are set for another round of hike in the next couple of days.

Cement companies Gujarat Ambuja Cement, Larsen & Toubro, Grasim Industries and the Associated Cement Companies (ACC) are looking at increasing the prices of a 50 kg bag by Rs 4 to around Rs 172-174.

A cement dealer said: "Cement pick-up has been good in the last few days and therefore the prices are likely to go up. Major cement makers have indicated a price hike of around Rs 4 in the next two-three days."

A senior industry official said, "Prices in the wholesale segment are unlikely to be affected and will remain constant."

Cement analysts said that other parts of Maharashtra could also see a price hike in retail cement if the increase in Mumbai is sustained.

The price hike is not expected to spread to other parts of the country, especially the eastern market.

However, cement prices in the south could also witness an increase in the next few days, but analysts could not determine the extent of the price increase.

Cement prices in Gujarat have remained consistent despite the state government's recommendation last week to bring down prices by Rs 10 per 50 kg bag.

The Gujarat government had asked cement manufacturers to roll back prices to facilitate construction in the state. The cement companies had earlier rejected the proposal, but had said discussions were still on.