The Hindu Business Line : `Cement prices have risen due to demand supply concern'

Cement prices are up by Rs 5-7 per kg in West India and they are expected to rise further. The President of the Cement Stockists and Dealers Association, Mr Sanjay Ladiwala, says cement prices have risen due to the demand-supply concern. He adds that there will be a gradual but certain growth in cement prices in the coming months.

Excerpts from CNBC-TV18's exclusive interview with Mr Ladiwala.

Another buzz in the market of a Rs 7 hike. Is it a rumour or can it actually happen?

The price hike of Rs 7 is not likely to happen overnight. The prices do seem to be moving northwards.

How much higher has demand pushed it?

It varies in different regions; the western region has seen a Rs 5-7 hike since it was announced on November 1. The South is lagging behind because of the heavy monsoon it witnessed; the East is steady though at higher levels, and the North is set for taking off very soon.

When you look 12-18 months ahead, can you see a price of Rs 200 per bag in Mumbai retail, which is about Rs 175 today?

It would be very close to that. Even if it were not exactly Rs 200, it would be very close to that price in the retail segment.

What about North? There has been good strength in the northern markets.

The prices have firmed up there, from Rajasthan onwards to the North there is a lot of infrastructure growth. There is tremendous demand from that segment.

Is the situation in Gujarat better now?

Absolutely, I think the exports have also helped to bring about that situation.

So, you are positive; but you do not think anything will happen in a hurry?

Absolutely right. I think it should see a gradual but certain growth in the coming months.

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