Cement prices raised after the fall in prices, South India

Cement prices in south India have been raised after the fall in prices witnessed in the last two months.

Chairman and Managing Director of India Cements, N Srinivasan said that prices are likely to go up further as the gap between demand and supply is expected to narrow. Speaking to CNBC-TV18, Srinivasan said, "I think by the end of this year, demand and supply will balance out after many years. So that itself will lead to very firm pricing. Also, now with the monsoon over, this is really the busy period for cement, from December onwards and up to next September, particularly in the south. Even here, there has not been much addition to capacity in the last couple of years, and demand has been
growing. So, it is quite natural that we will be able to increase prices."

Cement prices in south India have risen by Rs 15-25 for a 50kg bag. According to Srinivasan, the hike is spread across the entire region and is sustainable. He said the recent fall in prices is likely to be fully covered in December, and will have an impact on financials in the next quarter. He said, "Prices in all, in Andhra, have also firmed up a little, as well as in Karnataka. I think in the whole of the south, there is a firming up of prices."

He added, "The prices had dropped a little in October-November. So the correction has taken place, and today the prices in Tamil Nadu would be about Rs 160-170."