Cement price set to go up by Rs 5 next week

Retail cement prices across the country are set to increase of Rs 5 per 50 kg bag from next week.

Domestic cement companies Gujarat Ambuja, The Associated Cement Companies, Larsen & Toubro and Grasim Industries are looking at increasing the price of the 50 kg bag by Rs 5 in Mumbai, to take the price of the 50 kg bag to Rs 160.

Prices in Andhra Pradesh and Karnataka could also increase by Rs 5 - Rs 7 per 50 kg bag, while in Gujarat, retail cement prices are likely to rise by Rs 5 to touch Rs 117 per 50 kg bag.

Cement companies had reportedly declared a 10-day production holiday in the last week of November aimed at reducing the demand-supply gap and push up prices. 

A leading cement stockist told Business Standard: "The price increase of Rs 5 per 50 kg bag in the retail segment has sustained. Therefore, a further increase is likely to take place from December 8."

The companies had planned a price jump of Rs 10 in the retail segment last week, but could implement only a Rs 5 increase, with the balance being implemented from Monday, said a cement industry analyst.

After facing a sharp decline of around Rs 10 in the last two weeks, prices in Gujarat are set to improve.

"The price situation in Gujarat is slightly better, since despatches were in short supply for a few days last week. A price hike of Rs 5 was planned for last week, but failed to take off. Since prices in Mumbai are set for an increase in the coming days, Gujarat will also improve shortly," a cement dealer said.

Other parts of Maharashtra will also witness a similar hike in the coming week, with prices in Pune touching around Rs 130-Rs 133 mark for the 50 kg bag.

Meanwhile, Andhra Pradesh and Karnataka could see a price rise up to Rs 7 to stand at Rs 142 - Rs 146 per 50 kg bag.