A positive cement pricing trend which started in September has continued into October across most of India.

The national average price of cement in October stood at INR299/50kg bag, representing a 1.7 MoM rise. A disciplined pricing approach by cement producers has helped drive prices upward. An increase in prices in the southeastern state of Andhra Pradesh has been most welcome as the area has not been so profitable in recent times for cement producers active in that area.

Furthermore, the northeast could see increases of INR20-25/bag due to a lack of continuous coal supply, increases in the prices of gypsum and the increasing cost of diesel.  Furthermore, the government of India has waived the off-season discount of 10 per cent on railway fares and a service tax of 3.69 per cent has been imposed as of 1 October 2012. This could lead to a INR20-25/bag increase in the near term, according to industry sources.