Anticipating that the demand will surge after monsoon, cement dealers say the price may go up by Rs 5-10 per 50 kg bag in October in Mumbai and Delhi.
The retail price in Mumbai is hovering between Rs 205 and Rs 216 per bag of 50 kg. In Delhi, it is between Rs 195 and Rs 210. Interestingly, despite slight sluggishness in the demand during the monsoon, cement prices remained firm above Rs 200 a bag in Mumbai.
"Cement prices will go up on account of high demand in Bombay and surrounding area in October," said Sanjay Ladiwala, president, Cement Stockists and Dealers Association of Bombay. On the other hand, market players in the north said that prices will jump by Rs 10 in the retail market.
"The National Capital Region (NCR) has started witnessing the construction activities. Demand for cement is rising and price will shoot up within a month," said sources in Delhi.
"There will be an initial rise which can go up to Rs 225 per bag in October. This will continue to rise till January," said a Mumbai-based cement dealer.
He did not rule out the possibility that it may reach Rs 250 by next January when construction activities are on full swing.
Demand for cement during the monsoon was higher this year. The monsoon period across the country (June-August) saw over 9 per cent growth in dispatches.
It rose by 3 million tonne during the period to 35.77 million tonne as against 32.69 million tonne during the corresponding period last year.
Mumbai consumes every month 5 to 5.5 lakh tonne of cement, which goes up to 6 lakh million tonne in peak construction period. During monsoon it drops to around 4 lakh tonne per month. The total monthly cement consumption in Delhi is around 3 to 3.5 lakh tonne.
