Cement major JK Cement today said that cement prices, which remained subdued so far this fiscal, will go up by 10-15 per cent after monsoon.
Besides, the company further said it plans to expand capacity by 2-3 million tonnes next year with an anticipated capital infusion of Rs 1,500 crore in Rajasthan.
"We expect that cement prices will increase in the range of 10-15 per cent after monsoon comes to end," Company's MD & CEO Yadupati Singhania told reporters here today.
Noting that the overcapacity coupled with long monsoon had a bad impact on cement prices this fiscal, Singhania said that cement prices were much better last year.
"Last fiscal we were getting Rs 50 more per bag (50kg) (compared to this financial year's cement prices)… The main reason behind low prices is excess cement capacity in the market and monsoon season," he said.
At present, cement prices range between Rs 220 per bag to Rs 250 per bag in northern India, while in the southern market it costs Rs 200-220 per bag.
With less price realisation this year, companies are hesitant about expanding capacities. "Cement companies are not going for expansion because of overcapacity in the market," he said.
