HomeNewsCement manufacturers plan another price hike

Cement manufacturers plan another price hike

According to some unconfirmed sources,  the cement manufacturers are likely to hike the prices of the commodity once again in October, the second one in a span of few weeks. Cement manufacturers had taken a price hike in the beginning of the month to take advantage of festive season demand and ending of inauspicious ‘Pitru Paksha’ period.

Cement manufacturers had increased the prices by Rs30-50/bag in the south region and Rs 10-15/bag MoM in other regions in the beginning of the month of October. However, the second price hike is likely to be less steep and will be in the range of Rs 10-15per bag. According to the industry sources, second hike has become necessary as the cost have gone up steeply.

While pet coke prices have surged another 20 per cent QoQ (double YoY), imported thermal coal prices have also spiked up by 33 per cent QoQ. Rising crude prices have pushed up diesel prices by 7 per cent QoQ. Thus, analysts estimate Rs 80-100 per MT input cost inflation and RS 20-40 per MT freight cost increase QoQ for the industry.

According to dealers, the south and west regions are likely to lead the growth in demand, with high-teens YoY growth on a low base. The north and central regions should see growth in low-single digits YoY. The east region is likely to see a mid-single digit decline YoY on a high base as it was impacted by floods in Bihar, transporters’ strike in Chhattisgarh and sand availability issues in West Bengal.

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