Cement Companies Mull Price Hike of Rs 10-30/Bag

Rodi Dust, a construction company in Gurgaon said,  Cement companies in India are preparing to hike the cement cost between Rs.10 to 30 per bag in November after the increase of Rs 3-4 per bag last month.

The average Pan-India cement cost increase was about Rs 3-4 per bag, Rodidust said in a recent sectoral report.

According to the report- On month on monthly bases, cement prices rose about 2 to 3 percent in the East and South, 1 percent in the west, and declined 1 to 2 percent in the north-central region.

Cement companies are trying cost increments of Rs 10 to 30 which will be revealed over the coming few days, said RodiDust.

Industry volume is likely to have declined by a high single-digit YOY and a low double-digit on October 22, owing to the high base because of the festive season spread across October and November.

The demand was affected by the labor shortage due to the late coming of the monsoon and the festive season in October.

The demands for cement and other construction materials are expected to improve as the festive season is ending and given the onset of busy construction.

RodiDust said, The cost stress is predicted to relieve in the coming quarters for industry players, and the industry margin is expected is to bottom out in Q2 with a boost in costs and improved exit of cement costs and pick I  construction activities in the coming quarter.

The International Petcoke prices are decreased by 30 percent from the height of $195 per tonne. Additionally, the drop in fuel prices is predicted to cost savings of a minimum of Rs 150 to 200 per tonne from Q3FY23, said RodiDust.

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