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Hike in Prices
Consequent to pick up in demand, cement companies across regions have hiked prices by Rs 5-7 a 50 kg bag for the third consecutive month.
Prices in Mumbai, Pune and the other major cities in Maharashtra were increased by Rs 5 a bag. The average price in Mumbai was Rs252-255 a bag. In Chennai, prices were increased by Rs10 a bag to Rs235 on demand from large real estate projects, said a dealer.
However, cement manufacturers hope that the Budget allocation for infrastructure projects to spur demand and absorb new capacity additions going on stream.
Starting March, cement companies have hiked prices further by Rs10 a bag on the back of increase in excise duty coupled with hike in fuel cost and cess on coal.
“Manufacturers have passed on the increase in cost of production to end-users on good demand in the short term. Companies from the North can pass on the hike due to demand-supply dynamics while south-based firms may their earnings hit due to fear of a supply influx,†said an analyst.
The recent price hike has come as a booster for the cement stocks as the most them closed on the positive territory on Tuesday.
EPC News Bureau
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