In January, Indian retail cement prices are set to increase by Rs 5-10 per 50 kg bag across the country following a surge in construction activity. The rise may be the sharpest in Mumbai, the largest cement market in the country. A leading cement stockist in the city said, "The pickup in December has been very good and therefore prices are likely to move up in the first week of the new year." Currently, retail price of a 50kg bag in Mumbai is Rs172, while the wholesale price is Rs154-155.
Meanwhile, retail cement prices in Gujarat are also likely to rise to the level of Rs130 from the current level of Rs120 a bag. "Prices in Gujarat have remained relatively lower owing to oversupply and underpricing by some players. However, with the increase in Mumbai prices, prices in Gujarat are also likely to rise," a cement sector analyst said.
Earlier this month, retail cement prices in Chennai went up by Rs20 per 50kg bag, to stand at Rs155. Prices in Kerela have also risen to around Rs170. However, Andhra Pradesh continues to remain depressed with average retail prices in the range of Rs140 for the 50kg bag. Cement markets in the north and east have witnessed a steady growth in demand leading to firm prices, with prices of the 50kg bag in West Bengal touching Rs180 levels.