With Indian consumption showing some signs of improvement local producers are looking to raise prices ahead of the impending monsoon season.
According to sources cited by DNA India, prices are expected to rise by at least INR10/bag to possibly INR15/bag. Monsoon rains are due in June and traditionally supress construction activity until September/October and therefore cement companies generally increase prices before monsoon sets in.
At the start of 2013, the average price of a 50kg cement bag hovered around INR275 (US$4.89) reached INR295 by the end of March. However, in the intervening period prices were subject to wide fluctuations. Sector analysts put the average price for the Jan-March 2013 quarter at around INR280-285/bag – a discount of almost 10 per cent against the prevailing prices in July last year. April prices were lower than March but things have begun to improve since mid-May, according to other industry sources with producers in some regions able to get back to realisations seen in March.
