Retail cement prices in Mumbai - the country's largest cement market - are set to breach a two and a half year high of Rs 180 per 50 kg bag.
Cement companies are pushing for a price hike of Rs 3 - Rs 5 to Rs 178 - Rs 180 per bag in the Mumbai market from February 1.
While retail cement prices are expected to go up in the other parts of Maharashtra as well, prices in Gujarat, Rajasthan, north and southern states are also eyeing a hike of Rs 5 per 50 kg bag.
The last time retail cement prices touched the Rs 180 levels was in May 2001. Industry sources said that prices in Mumbai are looking at touching the all time high of Rs 185 - Rs 188 per 50 kg bag.
A leading cement stockist told Business Standard, "Retail cement prices in Mumbai should stabilise around the Rs 185 mark."
Cement sector analysts said that prices have started firming up on the back of a sustained demand rise in these regions.
Meanwhile, prices in Gujarat and Rajasthan are around Rs 140 - Rs 145 per 50 kg bag. Cement dealers in Gujarat said, "Demand has been on the rise in Gujarat and with real estate prices going up, cement prices are looking at firming up."
In the southern regions -- in Andhra Pradesh, Kerala, Karnataka and Tamil Nadu, prices are hovering around the Rs 160 mark.
Analysts said that once the price hike in Mumbai and the western region is stabilised, the southern markets are likely to experience a similar increase.
Prices in east, however, have remained steady at Rs 170 on the back of a demand supply match.
In Delhi, retail cement prices could go up by Rs 2 - Rs 5 in the next two weeks to stand at Rs 160.
