Cement Prices Hike: Inflation hit home builders, companies increased prices in September

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Cement Prices Hike: The problems of people who are facing the brunt of inflation are going to increase. Now more money will have to be spent to build houses. Cement companies have increased the prices in the month of September. Construction activities reduce during the monsoon season. In such a situation, the prices of cement also come down. This happened this year too, but after that the companies have increased the prices in the month of September. The companies are hopeful that after the rains are over, the construction work will pick up pace once again, even before the demand increases, the companies have increased the prices.

Demand may increase in September

According to the Meteorological Department, the south-west monsoon has started weakening. In such a situation, the time for its end has come near. Cement companies expect demand to improve. However, due to high prices, the profits and sales of the companies are also likely to be affected. In September, cement companies have increased the prices by about Rs 10-35 per bag of 50 kg cement. According to Jefferies Limited, they have derived this figure after talking to some cement dealers. Prices remained stable in June and July as sales were affected and construction activity slowed down. After this again, there was a slight decline of one to two percent in the month of August. After this, in September the companies have raised the prices again.

Rate is lower than last year

Home builders are facing problems due to increase in the prices of cement companies. However, the current prices are still lower than last year’s prices. The demand for cement was better in the April to June quarter of this financial year. During this time the companies worked on increasing the volume and increasing the market share percentage even after increasing the price. The average cement price in the June quarter was Rs 355, while it was Rs 358 in the January-March quarter, marginally lower than the last quarter last year. However, in April-June 2022, cement rates were at Rs 365 per bag.

Why the price of cement increased

The operating profit of 42 cement companies fell by 7.5 per cent in the April-June quarter of this financial year. Simultaneously, the raw material cost of cement remained flat. In such a situation, preparations are already being made by the companies to increase earnings and operating profit. In such a situation, it has to be seen that for how long the companies are able to keep the cement prices high.

185 cement plans in india

At present there are about 185 huge cement plants in India. Out of this, their names are prominently added to the top 10 cement companies.

• Ultratech Cement Limited

• Ambuja Cement Limited

• Birla Cement Limited

• JK Cement Limited

• Binani Cement

• ACC Limited

• Ramco Cement

• Shree Cement Limited

• Dalmia Cement

• The India Cement Limited

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