After the second round of the general elections, cement makers are eyeing a price hike in Mumbai -- the country's largest cement market. While cash discounts of Rs 2 per 50 kg bag have already been withdrawn, the industry expects a Rs 8-10 price hike in the non-trade or wholesale segment from Monday.
A wholesale cement dealer in Mumbai told Business Standard, "We are expecting non-trade segment price to go up to above Rs 165 per 50 kg bag from the current ruling price of Rs 158 for the 50 kg bag."
Analysts said that the price increase in Mumbai could soon spread to neighbouring markets of Pune and Nagpur. "If the price increase is implemented successfully in Mumbai in the non-trade segment, prices in other markets in the region will also firm up a bit," they pointed out.
"In the retail cement market, companies were offering cash discounts of Rs 2 in the pre-election time, which have been withdrawn after the election day," one cement sector analyst said. The ruling price in Mumbai in the trade or retail segment is around Rs 172 per 50 kg bag.
Industry sources said that a price hike in the trade segment is also not ruled out. " Trade prices will be pushed further up as the gap between the trade and non-trade will narrow down after the price hike is implemented in the non-trade segment," a senior industry executive said.
Gujarat was the first to kick off the price hike after the first round of elections. Post-election, the retail cement prices were increased by Rs 5 for a 50 kg bag.
A cement stockist in Gujarat said: "The consumer lobby had brought down the prices by almost Rs 15 per 50 kg bag, just before elections. Therefore, the Gujarat machete could go up slightly in the coming weeks."
However, cement companies supplying to the Gujarat market have not announced another price increase, he said.
