Price of cement in Andhra Pradesh has come down by Rs 10-15 per bag. This signals the continuing price volatility of the building material in the State in the last one year.
The price dip in the State, which is one of the largest cement producers in the country, has come at a time when other markets in the country are witnessing price-rise.
“There has been significant capacity addition in Andhra Pradesh of late and this is a key reason in driving the price lower,’’ K. Ravi, Managing Director, NCL Industries Ltd, told
Though demand has been improving for the last two/three months, increased availability in the form of new capacity addition has offset any likely advantage on the pricing for the cement producers, he added.
The Rs 1,800-crore joint venture cement plant Vicat-Sagar Cement at Chattrasal, Gulbarga district of Karnataka, has also recently launched its cement sale in the State, especially in the adjoining districts of Telangana through Bharathi Cement.
In the last few days, the prices hovered between Rs 220 and Rs 235 in Hyderabad, Rs 220-240 in coastal Andhra and Rs 240-260 in Rayalseema region.
In comparison, the average price in most of the country was close to Rs 300 per bag of 50 kg.
Small players
The new entrants, especially smaller ones, are to be blamed for near non-viable price, said a senior functionary of a Hyderabad-based listed cement company, who did not want to be named.
Driven by lack of brand strength and need for the cash flows, small players were selling at far lower prices forcing big brands to reduce their price as well, he said.
naga.gunturi@thehindu.co.in