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 Transport

Leh Airport Goes Green

Leh Kushok Bakula Rinpoche Airport is set to become India’s first airport powered by geothermal and solar energy, marking a significant milestone in sustainable aviation. This initiative, undertaken at an estimated cost of Rs 6.50 billion, aligns with efforts to transform Ladakh into a carbon-neutral region. With airports being major energy consumers, this project represents a crucial step toward reducing carbon emissions in aviation infrastructure.  The airport’s innovative approach involves replacing conventional air-conditioning systems with underfloor heating using geothermal..

Next Story
Infrastructure Urban

CCI Clears Tata Sons' Additional Stake Buy in Tata Play from Baytree

The Competition Commission of India has approved the acquisition of certain additional shareholding in Tata Play (Tata Play) by Tata Sons (Tata Sons) from Baytree Investments (Mauritius).The Proposed Combination involves the acquisition of 10% shareholding in Tata Play by Tata Sons.Tata Sons is an investment holding company, which is registered as a core investment company with the Reserve Bank of India and classified as a “Systemically Important Non-Deposit Taking Core Investment Company”.Tata Play, formerly known as Tata Sky, is one of India’s leading content distribution platforms pro..

Next Story
Infrastructure Urban

DARPG Releases 31st CPGRAMS Report for February 2025

The Department of Administrative Reforms and Public Grievances (DARPG) has released the 31st monthly report on the Centralised Public Grievance Redress and Monitoring System (CPGRAMS) for States and Union Territories (UTs) for February 2025. The report provides insights into the volume of grievances received, disposal rates, and major grievance categories across different states and UTs. Key Highlights from the Report Grievance Statistics: A total of 52,464 grievances were received in February 2025. 50,088 grievances were redressed during the month. As of 28th February 2025, the total pen..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?