Cement prices have shot up by INR5 per 50kg bag in Maharashtra and Mumbai on account of pressure on margins faced by manufacturers.
Companies including Grasim, Ultratech, ACC, Ambuja J K Lakshmi, Binani and Indorama have hiked cement prices in the western market.
The retail price per 50kg bag has touched INR268 whereas for institutional buyers, it rose to INR249 a bag. The wholesale prices will be around INR255 per bag. The prices were last hiked by INR5 across Maharashtra in the first week of December.
According to Sanjay Ladiwala, president of Bombay Cement Dealers and Stockists Association, cement supply shortage may see prices rising by INR10 more by June in the current year.
DNA Money had reported in its December 31 edition that cement prices would increase by Rs5 a bag and bigger companies may raise prices by INR10 before the current fiscal ends.
Analysts believe that possibility of price hike by around INR8 in Gujarat and INR5 in southern markets next week. They don’t expect prices to soften in the near-term.
Alok Sanghi, director of Sanghi Industries, said, "The input costs have shot up tremendously. The cost of coal, pet coke and freight charges has gone through the roof." "Margins are under tremendous pressure. Moreover, this is the season when demand generally rises," Sanghi said.