Cement companies are considering a cut in prices by around Rs 5-10 per 50 kg bag
As demand begins to slow down with the advent of monsoon, cement companies are considering a cut in prices by around Rs 5-10 per 50 kg bag by end of this month. Delayed monsoon had helped cement companies to increase prices in June by Rs 10-15 per 50 kg bag as demand continued, but in July, demand has started to decline. Before that companies had cut prices in May to clear their inventory.
“The price revision is expected to come in a week’s time as demand has slowed down across the country. We will witness sharp price cut in August as demand is expected to decline further,” said a top official at Cement Manufacturers Association.
A senior official from Ambuja Cement added, “We had witnessed steady demand till last month, but with the onset of monsoon, demand in July has declined by around 2% from previous month.”
Vinita Singhania, managing director at JK Lakshmi Cement said, “The price correction is coming late this year due to delayed monsoon which helped the construction activities to continue. This month, the monsoon has just set in and we have started to witness subdued demand. We have to wait and watch the impact of monsoon on demand and then decide on prices.”
A 50 kg bag of cement, costs around Rs 270-350 depending on the brand.
