Domestic cement companies raised prices in Mumbai by about three per cent as a housing boom and government spending on roads and bridges fueled demand, distributors said. Shares of cement companies gained.
Companies including ACC raised prices by about Rs 5 a 50kg bag, said Nikesh Shah of Harjivandas Mohandas & Co, which sells its cement. Associated Cement raised prices to about Rs 177 ($4) a bag, he said.
Prices of cement are rising because of an increase in demand for homes spurred by the lowest home-loan rates in more than three decades. Construction is also getting a boost from the government’s spending on roads, ports and airports. The construction of roads, dams and bridges typically peaks before the onset of monsoon rains in June.