Cement prices are up again in Andhra Pradesh. This time the price of the building material has gone up by Rs 20-25 a bag.
The retail price/bag which was in the range of Rs 210-220 last month is now hovering in the range of Rs 235-245, according to our enquiries in the market.
The slowly improving demand coming from the real estate/housing projects, higher power charges and increased railway freight are among the factors behind the price rise, say industry sources.
According to Ashok Ostwal, a senior executive of Kesoram Cement, prices are likely to inch-up further in March if demand goes up.
“Actually, demand should pick up by November itself which did not happen. It has been rather slow growth but we expect it to be better soon,” he said.
Despite the hike, cement prices in Andhra Pradesh still remain the lowest in the country, according to industry sources. While the price band in Hyderabad and surrounding districts is Rs 230-240, it is crossing Rs 250 in coastal Andhra Pradesh and ranges between Rs 260-270 in the Rayalseema region.
The average price in the State, one of the largest producers of cement is at Rs 240 compared with the national average of Rs 290 a bag.
In Kerala and Tamil Nadu, price is around Rs 350 and Rs 300. In the Eastern region also it is at a high of around Rs 350/bag.
According to a functionary of the Cement Manufacturers’ Association, the general performance of cement industry in the country would depend much on the expected revival of demand in the southern states including Andhra Pradesh.
Higher capacity additions and non-grounding of major infrastructure projects remain key concerns, he added.