Cement prices are expected to maintain their northward movement in the backdrop of continuing boom in the construction sector and rising cost pressures.
’’Cement prices remained firm across major cities, backed by a strong demand from the construction sector. Given the strong demand and also that companies were facing rising cost pressures, cement prices are expected to continue their upswing post-monsoon, the Centre for Monitoring Indian Economy’s (CMIE) capex survey said on Wednesday.
Mumbai and Delhi witnessed a price hike of Rs 3-5 per 50kg bag. Prices in the Mumbai market peaked to Rs 242 per 50kg bag in July and stood at Rs 239 in September. The rates in September 2006 were at Rs 215 per 50kg bag.
The uptrend in cement prices was more prominent in southern India, with Chennai and Hyderabad reporting a rise of around 6.5 per cent each. The hike was much sharper in Bangalore at around 19 per cent, CMIE said.
Cement consumption continued to rise even during the slack monsoon period. It posted a double-digit growth of 14.5 per cent and 18.6 per cent in July and August respectively.