Cement prices are all set to go up
Cement

Cement prices are all set to go up

As per the dealer checks by Kotak Institutional Equities, cement producers tried a Rs 15-20 a bag (5 per cent) hike pan-India, led by sharper increases in the south and the east for April. Only a part of this would get absorbed and more such hikes could be attempted in the coming weeks, it said.

Cement prices are set to go up as costlier Asian thermal coal and higher gas price outlook in Europe are likely to swell expenses for cement manufacturers. Power and fuel costs are likely to increase by 10 per cent in the April-June quarter because of a steep rise in coal and pet coke prices in March.

Cost inflation, muted volume growth and inadequate price hikes led to margin contraction for the quarter ended March.

UltraTech reported flat volumes and its power and fuel costs were higher than pan-India peers ACC and Ambuja Cements. Yet, its operating profit per tonne fell the least. Higher prices of petcoke and coal usually reflect in the financials of the cement makers after a lag of 30-45 days.

Margins contracted for ACC and Ambuja as their costs rose. Price hikes in a seasonally strong quarter did offset pressure to an extent.

As per the dealer checks by Kotak Institutional Equities, cement producers tried a Rs 15-20 a bag (5 per cent) hike pan-India, led by sharper increases in the south and the east for April. Only a part of this would get absorbed and more such hikes could be attempted in the coming weeks, it said.Cement prices are set to go up as costlier Asian thermal coal and higher gas price outlook in Europe are likely to swell expenses for cement manufacturers. Power and fuel costs are likely to increase by 10 per cent in the April-June quarter because of a steep rise in coal and pet coke prices in March.Cost inflation, muted volume growth and inadequate price hikes led to margin contraction for the quarter ended March.UltraTech reported flat volumes and its power and fuel costs were higher than pan-India peers ACC and Ambuja Cements. Yet, its operating profit per tonne fell the least. Higher prices of petcoke and coal usually reflect in the financials of the cement makers after a lag of 30-45 days.Margins contracted for ACC and Ambuja as their costs rose. Price hikes in a seasonally strong quarter did offset pressure to an extent.

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?