Cement prices to rise further in Q4-FY10 as construction booms
11 Dec 2009
Cement prices in the country, already up Rs8-10 per 50-kg bag, is expected to go up by at least Rs5-10 per bag in the last quarter of the current financial year (January-March 2009-10).
Cement prices in Mumbai, which is ruling at around Rs240-245 per 50-kg bag, is expected to go up to at least Rs250-255 per bag. In southern India, cement prices are expected to go up from Rs155-175 per 50-kg bag to Rs165-Rs185 per bag.
Cement prices tend to harden in the January-March quarter as demand from state projects picks up and rural housing drives up volume growth.
The growth of the domestic cement industry hit an 11-month low of 6 per cent in September 2009 amidst the spread of monsoon across the main cement consuming regions, the festival season, according to the Cement Manufacturers Association.
Cement production and despatches grew 9 per cent in September 2008.
Cement consumption across the country grew 14.6 per cent during the July-August 2009 driven by strong demand growth in the northern and eastern regions, according to monthly data provided by the CMI.