Cement firms in India increase cement costs as input prices inflate
Cement

Cement firms in India increase cement costs as input prices inflate

Cement firms across India have raised cement prices by Rs 10-40/bag in October as input costs have inflated.

According to cement dealers, the rise in prices is higher in Mumbai and Gujarat area, where the increase is Rs 40/bag, while in North and South India, the surge in costs is about Rs 10-20/bag. A cement bag weighs 50 kg, and the average cost of a cement bag is about Rs 375 across India.

Analysts said that while the input price inflation is one of the reasons for the cement firms to raise costs in October, an increase in demand coming from the realty sector and the government's push on infrastructure is another reason.

Cement firms had been planning to increase the costs of their products in the July-September quarter as well but could not do much due to the seasonality of low demand. During July-September, cement costs usually correct 2-3% quarter-on-quarter due to lower demand because of monsoons in the period.

But, this time around, dealers say that the firms might further raise costs by 10-15% during October-December to pass on the increase in input costs and preserve their margins.

As per a report by Emkay Global Financial Services dated September 6, In July-September, average pan-India costs likely dipped 3% quarter-on-quarter, which is additionally likely to have kept cement firms' margins under pressure for the quarter.

But, the brokerage believes that margins are likely to bounce back with demand and cost recovery in the second half of the current financial year.

Image Source


Also read: Cement production slumps 12% in Q1 FY22: ICRA report

Also read: Cement prices in August fell by 3% to Rs 328 per 50 kg

Cement firms across India have raised cement prices by Rs 10-40/bag in October as input costs have inflated. According to cement dealers, the rise in prices is higher in Mumbai and Gujarat area, where the increase is Rs 40/bag, while in North and South India, the surge in costs is about Rs 10-20/bag. A cement bag weighs 50 kg, and the average cost of a cement bag is about Rs 375 across India. Analysts said that while the input price inflation is one of the reasons for the cement firms to raise costs in October, an increase in demand coming from the realty sector and the government's push on infrastructure is another reason. Cement firms had been planning to increase the costs of their products in the July-September quarter as well but could not do much due to the seasonality of low demand. During July-September, cement costs usually correct 2-3% quarter-on-quarter due to lower demand because of monsoons in the period. But, this time around, dealers say that the firms might further raise costs by 10-15% during October-December to pass on the increase in input costs and preserve their margins. As per a report by Emkay Global Financial Services dated September 6, In July-September, average pan-India costs likely dipped 3% quarter-on-quarter, which is additionally likely to have kept cement firms' margins under pressure for the quarter. But, the brokerage believes that margins are likely to bounce back with demand and cost recovery in the second half of the current financial year. Image SourceAlso read: Cement production slumps 12% in Q1 FY22: ICRA report Also read: Cement prices in August fell by 3% to Rs 328 per 50 kg

Next Story
Infrastructure Urban

Sindi Multimodal Logistics to Begin Operations In 2025

The Sindi Multimodal Logistics Park is expected to commence operations in the upcoming year, potentially beginning with exports to Bangladesh via a riverine route. DeltaCorp, the developer that signed a concessionaire agreement with Maharashtra Multimodal Logistics Park Limited (MMLPM), has reportedly sought permission to initiate operations using the existing infrastructure, allowing it to start ahead of the scheduled commercial operation date. Sources indicate that the dry port, commonly referred to as the Sindi dry port, is likely to begin by exporting goods such as cotton, automobile part..

Next Story
Infrastructure Urban

Amaravati Project Back on Track with Renewed Momentum

The Amaravati Project, envisioned as the growth centre of Andhra Pradesh, is witnessing a revival after a five-year hiatus. Following the victory of the NDA alliance in the 2024 general elections and the return of N. Chandrababu Naidu as Chief Minister, the project has gained renewed vigor, marking a dramatic turnaround for the state’s capital development. Originally launched with great enthusiasm in October 2015, with Prime Minister Narendra Modi laying its foundation, Amaravati’s progress came to a halt during the tenure of the YSR Congress Party (YSRCP) government. Former Chief Ministe..

Next Story
Infrastructure Transport

Site Identified for Proposed Mega Rail Terminal near Bengaluru

The proposed mega coaching terminal near Devanahalli, on the outskirts of Bengaluru, is progressing as South Western Railway (SWR) officials move forward with plans to commission a feasibility study. This terminal, part of a nationwide Railway Board initiative, aims to accommodate growing passenger traffic and offer extensive maintenance facilities. The SWR has identified a site for the terminal in the villages of Bullahalli and KG Gururayanahosuru, near Venkatagiri Kote Halt station. Strategically located, the site lies close to National Highway 44 (Bengaluru-Hyderabad Road), 7 km from the S..

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