Cement companies to increase prices from April onwards
Cement

Cement companies to increase prices from April onwards

Cement producers throughout the country are planning to increase prices by an average of Rs 10-15 per bag this month. This decision comes despite subdued demand due to a slowdown preceding general elections.

Dealers anticipate that while price increases may be more pronounced in certain regions, particularly in southern India, they don't foresee these hikes being sustained. Instead, they expect increases of only around Rs 10-20 to persist.

For the past five months, cement prices have been decreasing consistently. Average prices for the March quarter are now 5-6% lower compared to the December quarter, with the most significant price cuts occurring in east and south India.

Despite expectations of a 6-8% year-on-year growth in volumes during the January-March period, which is typically robust, cement manufacturers have been unable to raise prices.

Kotak Institutional Equities stated that competitive pressure among major players to expand their market share and cost deflation have been the primary factors contributing to the weakness in prices.

Analysts suggest that with price hikes in April, cement producers might mitigate some of the impact of lower volumes during the quarter. However, they emphasize the critical importance of the sustainability of these price hikes, especially considering the tepid demand. If demand remains weak, there's a risk of either partial or complete rollback of these hikes.

Ravi Sodah, an analyst at Elara Securities, anticipates a moderation in demand due to the upcoming general elections. He suggests that cement firms may need to control prices to safeguard against a significant decline in margins.

Cement producers throughout the country are planning to increase prices by an average of Rs 10-15 per bag this month. This decision comes despite subdued demand due to a slowdown preceding general elections. Dealers anticipate that while price increases may be more pronounced in certain regions, particularly in southern India, they don't foresee these hikes being sustained. Instead, they expect increases of only around Rs 10-20 to persist. For the past five months, cement prices have been decreasing consistently. Average prices for the March quarter are now 5-6% lower compared to the December quarter, with the most significant price cuts occurring in east and south India. Despite expectations of a 6-8% year-on-year growth in volumes during the January-March period, which is typically robust, cement manufacturers have been unable to raise prices. Kotak Institutional Equities stated that competitive pressure among major players to expand their market share and cost deflation have been the primary factors contributing to the weakness in prices. Analysts suggest that with price hikes in April, cement producers might mitigate some of the impact of lower volumes during the quarter. However, they emphasize the critical importance of the sustainability of these price hikes, especially considering the tepid demand. If demand remains weak, there's a risk of either partial or complete rollback of these hikes. Ravi Sodah, an analyst at Elara Securities, anticipates a moderation in demand due to the upcoming general elections. He suggests that cement firms may need to control prices to safeguard against a significant decline in margins.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?