Mumbai cement prices cut marginally

Cement prices have come down by Rs 2-4 per bag in Mumbai even as the first shower of monsoon lashed the city. The price of a cement bag in Mumbai is around Rs 245 now.

Industry players say that the price cut came as a normal course of action but not as a result of the government's pressure in the recent months.

Analysts termed the price cut a correction rather than the effect of the monsoons. However, an analyst said the price reduction was not announced by the companies but was a move by wholesalers to sell their stocks during the slack monsoon season. No such reduction has been announced in other parts of the country.

Terming the reduction as seasonal and insignificant to indicate anything big, analysts said more reduction in the price could be expected. The prices had risen by 50 per cent in the last 12 months even as cement consumption hit an all-time high riding on a booming economy.

Corporations as well as government organisations are involved in massive infrastructure expansion projects. Housing construction activities are also happening on a larger scale.

The consumption in the country was 135 million tonne in 2005-06, up from 127.14 million tonne the previous financial year. Two weeks ago, the prices in non-trade or bulk segment were hiked by Rs 3-5, following the Rs 6-8 increase in the retail prices before.