Cement prices in 2008 are expected to remain more or less stable at current levels. Market players and cement analysts predict that prices will rise Rs 3-5 a bag at the most this year. | |
| Market sources said that coming up capacities in the year along with imports from Pakistan may not allow cement makers to hike prices. |
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| Hitesh Agarwal, head of research, Angel Broking, said, "There is no scope of any further increase in cement prices. The hike will be a maximum of Rs 5 a bag." |
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| According to a top official in the Cement Manufacturers' Association (CMA), there is no shortage of cement and prices will be determined by the demand and supply factors. |
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| However, he added that rise in coal and fuel prices is a cause of worry and it may force players to pass on the increase in input costs to customers. |
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| Major cement dealers in Mumbai said that they did not foresee any dramatic rise in cement prices in 2008 and added that the market would be stable. Sources in one of the multinational companies in the country said that they did not expect significant rise in cement prices. |
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| However, cement makers, dealers and industry analysts ruled out any chance of a cut in rates. |
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| However, some cement makers are waiting for the budget before taking their course of action on the price front. Prices saw a significant rise in the whole of 2006, which continued unabated till March, 2007. |
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| During the period, cement prices increased from Rs 165 a bag to Rs 240 a bag, a jump of over 45 per cent. |
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| However, regular intervention from the government from the beginning of financial year 2007 has reined in galloping prices somewhat. Industry experts believe the government did whatever it could to put a cap on prices in the previous budget. |
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| CONCRETE FACTS |
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| Jan, 07: 12.5% customs duty on imported cement abolished |
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| Feb, 07: Dual excise duty imposed -- Rs 350 per tonne of cement sold at or below Rs 190 a bag and Rs 600 per tonne sold over Rs 190 a bag |
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| Apr, 07: Countervailing duty (CVD) of 16% on imports withdrawn; special additional customs duty of 4% withdrawn |
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| May, 07: Dual excise duty structure rolled back |
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