India's cement prices rise

Post-Union Budget, most areas of India enjoy increase in cement prices. [$]

{reg}[PAID={"id":"1,2,3,4,5","title":"The content you tried to access is only available to paid subscribers.","link":"1"}] The Economic Times quoted an Angel Commodities Analyst as saying, ÔÇ£Post-Budget, cement companies hiked prices by Rs 10-12 per bag depending on the region, to pass on the increase in input costs.ÔÇØ These costs included reduced availability of rail wagons, increased freight costs and higher excise duties.

Previously, analysts had thought the price of cement would fall because supply would exceed demand, but demand was strong, coupled with the difficulty in transporting product.

The Union Budget numbers on excise duty will likely affects cement sold below Rs 190/bag by Rs 3; for cement sold above Rs 190, a minimum excise duty would be Rs 3.75/bag.

Indias southern region, which had reduced its cement production was the sole area of decline, lost 1 percent on its prices, while the northern region gained 6 percent. The central region enjoyed a 13.0 percent increase in dispatches and exhibited a 107 percent capacity utilization. Indias western region experienced a 8.5 percent increase in cement dispatches.

It is expected that demand for cement will remain strong in India due to measure the Union Budget is implementing to stimulate rural growth in infrastructure and more allocation to other infrastructure projects. V. Srinivasan, Angel Commodities Analyst stated to The Economic Times, ÔÇ£Indian cement companies have been reporting strong volume sales since the past few months. The additional capacity that has come on-stream has enabled most of the cement manufacturers to increase total cement production.ÔÇØ