Cement prices set to increase as expenses surge

Cement prices are set to increase as costlier Asian thermal coal and a higher gas price outlook in Europe is expected to surge expenses for cement manufacturers. Power and fuel prices are likely to rise by 10 per cent in the April-June quarter because of a steep rise in coal and pet coke costs in March. These price hikes would be passed on to consumers for profitability to enhance sequentially. Cement makers tried a Rs.15-20 a bag hike pan-India, led by sharper growths in the south and the east for April. Only a portion of this stands to get absorbed with more such increases expected in the coming weeks.