Cement prices may rise in south by month-end
Mumbai, March 9: Southern India, which has been having a supply overhang for long, is now expecting a price hike in cement by about Rs 5-10 per 50 kg bag. Prices are likely to increase in Tamil Nadu, Kerala and Karnataka, even as those in Andhra Pradesh may tend to be stable because of the huge cement capacities there, which may still maintain a surplus situation.
Chettinad Cements general manager-marketing, Uday Shankar said, “Cement prices in southern markets, especially Tamil Nadu, are likely to increase by the third week of March or early April.”
At present, prices in Tamil Nadu are Rs 165-170 in some areas, while they are Rs 155-165 in other areas. Prices in Kerala are Rs 165-170 per bag, while those in Karnataka are Rs 155-160. Andhra Pradesh prices are lower at about Rs 140 per bag.
Cement Dealers’ Association president, Sanjay Ladiwala told FE, “Demand is increasing in the south also and a Rs 5-10 hike in cement prices can be expected in about one month period. Moreover, the recent price increases in other regions of the country, may have an upward impact on prices in the south.”
Mr Ladiwala also expects a hike of about Rs five per bag in the western markets by around March 15. However, industry observers differ on the possibility and timing of a price hike in the south. An analyst with a Mumbai-based brokerage firm opined that prices may increase just before monsoon, but not in the next one-month period. The hike will have to be pushed before the monsoon, because prices tend to fall again during the rains. Another analyst ruled out a price hike in south saying that the region still has an oversupply.
Posted: Thursday, Mar 10, 2005 at 0108 hrs IST
Courtesy :The Financial Express
