The Hindu Business Line : AP cement manufacturers hopeful of rise in prices

They expect that construction activity will increase leading to a rise in demand as the peak monsoon season is coming to an end. Cement prices are hovering around Rs 110 per bag in Hyderabad and Rs 135 per bag in north coastal Andhra and Rayalaseema regions.

Though the price is higher than that which prevailed during the corresponding period last year, the manufacturers say that it is still not viable.

There has been a rise in input costs, but anything less than Rs 130 per bag was unviable, they said. There is a pressure on the market price of cement in Hyderabad and certain parts of the Telangana region where there are brands other than the Andhra Pradesh cement brands.

Hence, the price is lower in the State capital when compared to Visakhapatnam in coastal Andhra or Anantapur in Rayalaseema. The average price of cement last year was about Rs 130 per bag. The lowest price had been Rs 97 per bag and the highest was Rs 142 per bag. This year, the lowest price so far stood at Rs 98 per bag. The peak demand for cement, however, is between January and April.

Andhra Pradesh has 18 major and 14 mini-cement plants, which together have an installed capacity of 25 lakh tonnes per month. Industry sources told Business Line that demand for cement in the country, particularly in the State, was expected to go up further this year in the light of the launch of various infrastructure projects both by the Central and State Governments. Public expenditure on Government projects invariably increases when elections were round the corner, they said.

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