CEMENT FIRMS TO HIKE PRICES RS 30-40 IN SOUTH

Cement companies in four states of southern India are all set to increase prices by 30-40 rupees per bag from Monday, dealers told Informist.

The price hike is due to steep rise in input costs besides strong demand across the states, dealers said. Companies that have sent communications to the dealers on price hike include UltraTech Cement Ltd, India Cements Ltd, Ramco Cements Ltd, Sagar Cements Ltd, Orient Cement Ltd, Dalmia Bharat Ltd, NCL Industries Ltd, Kesoram Industries Ltd and Shree Cements Ltd, dealers said.

After the price hike, a 50-kg cement bag in these states will be sold in retail markets at 340-380 rupees, depending on the location and logistics, dealers said. After volatility in prices in January, February saw cement companies maintaining stable pricing.

Cement volumes during the month have picked up significantly as construction activity in key states such as Andhra Pradesh, Telangana and Karnataka have picked up, dealers said. The current price hike likely to remain for the next one to two months, as the companies are determined to maintain the higher prices, dealers said. When contacted, a Hyderabad-based large cement manufacturer confirmed the price hike on condition of anonymity.

He said pet coke prices have increased around 53% on year in recent months, forcing the companies to go for a price hike.

Cement companies have already stopped dispatches and may resume them in the next four to five days, once the price increase reaches the retail customers, a large dealer in Hyderabad said.

However, the companies are unlikely to take the higher price hike in the institutional segment, restricting it to a 10-20 rupees increase per bag due to long term commitments with the buyers, a cement company official said.