Cement Prices Hike: Cement companies have increased the price of cement in September and due to this it will become expensive for you to build a house, shop or get any kind of construction done.
Cement Prices Hike: To build a house or shop, house, commercial property etc., now more will have to be spent because cement companies have increased the prices as soon as September comes.
Due to less construction activities during the monsoon season, the prices decrease every year in July-August and this year also the same has been observed. However, now construction activities are increasing again in the month of September and in view of this, cement companies have increased the prices to take advantage of higher demand.
According to Livemint news, after the weakening of the south-west monsoon, its end is nearing and cement companies are expected to get good demand in the month of September. However, if the impact on the profits of cement companies is seen, then it remains to be seen how long the high prices persist.
How much have cement prices increased in September?
In September, companies have increased the prices of cement by Rs 10-35 per bag (50 kg cement each bag). According to Jefferies Limited, they have arrived at this figure after talking to some cement dealers. There was stability in prices in July which translated into a 1-2 per cent decline in cement prices in August. The rise in cement rates seems to be returning in September.
Rates are currently lower than a year ago
Strong growth in demand for cement was seen in the April-June quarter, however, despite increasing prices, companies have focused on expanding volumes and increasing the percentage of market share. Due to this effect, a slight improvement was seen in the profits of cement companies.
Cement prices in the June quarter were at Rs 355 per bag, which was marginally lower than Rs 358 in the January-March quarter. However, if compared to a year ago, cement rates in April-June 2022 were at Rs 365 per bag.
Cement prices will rise well in the July-September quarter – know why
Therefore, it is important that cement prices increase well in the July-September quarter so that an increase in the earnings and operating profit of cement companies can be seen. In the April-June quarter i.e. the first quarter of the financial year 2023-24, the operating profit of 42 cement companies had fallen by 7.5 percent, while the cost of its raw materials remained almost flat.
