Cement prices witnesses 3 to 5% increase on monthly basis in Jan

11 Feb 2022 CW Team

Cement prices witnessed a 3 to 5% price increase on a monthly basis in the country in the month of January, which was led by hikes seen across eastern and southern regions.

The upward movement was after the weak demand that prevailed in November and a few weeks of December, which was pressuring for cement companies.The extended rainfall in southern India, while the issues of sand mining in eastern India were some reasons for the weak demand for the period.

Cement companies have indicated signs of improvement in demand from mid-December, which will not support the upward price trends. However, there are chances that it could lead to an increase in cement prices in February.

The price hikes in South and East India are about 5% and 6% each. While in West and North India they are about 3% and 1%. However, in Central India, they have continued to stay flat.

MD and CEO, Dalmia Cement (Bharat) Limited said that capacity usage was 69% in Q3 FY22 and 83% in December. The same is expected to reach the range of 70-75% for the January- March quarter. He indicated that in select regions the price hikes were already being rolled out.

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Also read: Cement prices to increase by Rs 25-30 per 25 kg bag in AP

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