Cement companies to increase prices from April onwards
Cement

Cement companies to increase prices from April onwards

Cement producers throughout the country are planning to increase prices by an average of Rs 10-15 per bag this month. This decision comes despite subdued demand due to a slowdown preceding general elections.

Dealers anticipate that while price increases may be more pronounced in certain regions, particularly in southern India, they don't foresee these hikes being sustained. Instead, they expect increases of only around Rs 10-20 to persist.

For the past five months, cement prices have been decreasing consistently. Average prices for the March quarter are now 5-6% lower compared to the December quarter, with the most significant price cuts occurring in east and south India.

Despite expectations of a 6-8% year-on-year growth in volumes during the January-March period, which is typically robust, cement manufacturers have been unable to raise prices.

Kotak Institutional Equities stated that competitive pressure among major players to expand their market share and cost deflation have been the primary factors contributing to the weakness in prices.

Analysts suggest that with price hikes in April, cement producers might mitigate some of the impact of lower volumes during the quarter. However, they emphasize the critical importance of the sustainability of these price hikes, especially considering the tepid demand. If demand remains weak, there's a risk of either partial or complete rollback of these hikes.

Ravi Sodah, an analyst at Elara Securities, anticipates a moderation in demand due to the upcoming general elections. He suggests that cement firms may need to control prices to safeguard against a significant decline in margins.

Cement producers throughout the country are planning to increase prices by an average of Rs 10-15 per bag this month. This decision comes despite subdued demand due to a slowdown preceding general elections. Dealers anticipate that while price increases may be more pronounced in certain regions, particularly in southern India, they don't foresee these hikes being sustained. Instead, they expect increases of only around Rs 10-20 to persist. For the past five months, cement prices have been decreasing consistently. Average prices for the March quarter are now 5-6% lower compared to the December quarter, with the most significant price cuts occurring in east and south India. Despite expectations of a 6-8% year-on-year growth in volumes during the January-March period, which is typically robust, cement manufacturers have been unable to raise prices. Kotak Institutional Equities stated that competitive pressure among major players to expand their market share and cost deflation have been the primary factors contributing to the weakness in prices. Analysts suggest that with price hikes in April, cement producers might mitigate some of the impact of lower volumes during the quarter. However, they emphasize the critical importance of the sustainability of these price hikes, especially considering the tepid demand. If demand remains weak, there's a risk of either partial or complete rollback of these hikes. Ravi Sodah, an analyst at Elara Securities, anticipates a moderation in demand due to the upcoming general elections. He suggests that cement firms may need to control prices to safeguard against a significant decline in margins.

Next Story
Infrastructure Urban

CONCOR Launches Double-stack Service Between NCR and Varnama

State-run Container Corporation of India (CONCOR) has launched double-stack container train services between the National Capital Region (NCR) and Varnama near Baroda. This initiative aims to facilitate customers at Nhava Sheva near Mumbai, home to Jawaharlal Nehru Port (J N Port). On December 21, the first double-stack container train from Khatuwas and Dadri in NCR reached CONCOR’s Gati Shakti Multimodal Cargo Terminal (GCT) at Varnama, situated along the Western Dedicated Freight Corridor (WDFC). The train carried export cargo destined for J N Port, according to a statement from the state..

Next Story
Infrastructure Transport

Less than 10% of Rs 40 Billion State-aid for Shipbuilding Utilised

A government-sanctioned financial assistance program worth Rs 40 billion, intended to support local shipbuilders over a decade starting in April 2016, has seen minimal utilisation, with only Rs 3.85 billion—less than 10 per cent of the total fund—disbursed thus far. With 15 months remaining before the scheme concludes, its uptake has been limited. The financial aid applies to shipbuilding contracts signed between April 1, 2016, and March 31, 2026. According to a written response provided by Union Minister of Ports, Shipping, and Waterways Sarbananda Sonowal to the Rajya Sabha on December ..

Next Story
Infrastructure Transport

Civil Aviation Minister Opens New ATC Tower at Indore Airport

The Minister for Civil Aviation, Ram Mohan Naidu Kinjarapu, inaugurated the new Air Traffic Control (ATC) Tower-cum-technical block at Devi Ahilyabai Holkar International Airport in Indore, Madhya Pradesh. During the inauguration, the minister toured the facility, where ATC experts explained various technical aspects of tracking and coordinating flights from the newly constructed tower. In addition to the ATC tower, the airport has also introduced a zero-waste plant. The union minister confirmed that this initiative aligns with the government’s commitment to sustainability. Minister Ki..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000