HomeNewsCement price may be hiked again in December

Cement price may be hiked again in December

Cement manufacturers are likely to hike prices once again in December, though the costs have started moving southward. In November, cement manufacturers had hiked the prices by 6% to cover cost inflation. However, part of it later on rolled back.

According to dealers, price hikes were rolled back by 1-2%. December being the last month of the third quarter, leading manufacturers want to hike prices to maintain their profitability during the quarter.

Price increase was seen across all regions with Central region seeing maximum hike at 8% MoM and hike was slightly milder in East/ West/ North/ South at 5-7% MoM. Due to this price hike, Q3FY22 average cement price presently is flat vs average of previous quarter at an all India level and for the same period region wise East prices is down 3%, for West and North is up 2%, South is flat while central is still down 1%.

But in November 2021, costs have started moving southward for cement industry. For example, imported coal prices after peaking in October have almost halved now. Average imported coal price is down 37% MoM and presently it stands at USD130/t (6000 kcal). And center and state government tax cut on petrol and Diesel, has positive bearing on logistics costs.

Meanwhile, Cement production in India for the month of September 2021 has increased by 11% YoY at 26.8mt. Interaction with dealers suggests that cement demand is slowly picking up post festival and the trend keenly watched now in view of another expected price hike.

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