Cement rates set for hike in April; here’s how much more it is expected to cost

Cement rates are set to be increased in April, with some of the producers in the country’s central and eastern parts already initiating the hike, reports said. This comes in the backdrop of tepid demand over the past few months, which had moderated the prices.

Cement prices were down by 5-6% in March, the Hindu Business Line reported, adding that the rates have been slipping for five consecutive months. The hike in rates from this month onwards would be implemented nationwide, in view of a likely revival in demand, the report added.

The hike in the price of a 50-kg cement bag is set to be in the range of ₹10 to ₹50, depending on the different regions of the country. At present, the wholesale price of 50-kg cement bags is in the range of ₹270-₹410 apiece, depending on the grade and quality of the cement. The rates also differ from company to company.

How much more cement is expected to cost?

• The sharpest hike is expected in south India, in the range of ₹30-Rs 50 per bag, the Economic Times reported.
• In eastern states, the price could be raised by up to ₹30, whereas the hike could be in the range of ₹20-25 in western India, the newspaper added.
• The portion of increase is expected to be lower in north India, in the range of ₹10-15, it further noted.

Meanwhile, the stocks of some leading cement majors edged lower on Thursday, April 4. ACC settled 0.67% lower at ₹2,616.25 apiece. Dalmia Bharat closed at ₹2,028.00, down 0.71%, and Ambuja Cement was 1.61% lower at ₹624.7, whereas UltraTech Cement settled almost flat at ₹10,005.1.

In the quarter ended December 2023, cement players had reported strong financial results, with Dalmia Bharat’s net profit climbing by 22% year-on-year (YoY) to ₹266 crore, Ambuja Cement’s net profit jumping by 39% YoY to ₹514 crore, UltraTech’s net profit increasing by 68% YoY to ₹1,777 crore and ACC reporting a massive 378% surge in net profit at ₹527 crore.