India prices may rise INR5-1 but may not sustain
Cement prices in India are likely to rise by INR5-15 per 50 kg bag in north India as stockists and dealers warily test the waters, but analysts and some section of the trade believe conditions do not exist to support a firming up in prices.
"We have heard that there will be a price hike soon, but there has been no official notification so far," a Delhi-based cement stockist said.
A cement analyst with a domestic brokerage said the move to raise prices is "natural" and an attempt to recover lost ground.
Cement prices are currently around INR240-245/50kg bag in Delhi.
"We have heard that there has been a decision to raise prices in the North, but the quantum of the rise has not been decided as yet," another stockist said.
Most analysts and dealers believe demand in the region is still low and there is some oversupply.
"In Dec-Jan, there is a dense fog cover over the city and winter is at its peak, so there is a lull in construction activity. The demand is quite subdued right now, so even if the prices are raised, they will have to be reduced soon," a dealer said.
Published under Cement News
