Cement prices have once again started to rise rapidly in
Andhra Pradesh (AP). Within weeks, the building material has seen 2 hikes, each
time minimum Rs. 15 for a 50 kg bag .
Another Round of Hike..!
In October, 2012 alone, the price in Hyderabad market touched
Rs. 260 per bag. Cement manufacturers are upbeat with this upward trend in
prices, since the product hit a low of nearly Rs 210 per bag in September,
2012.
Industry analysts see another round of hike in the coming
weeks. In Rayalseema and coastal Andhra, where construction activity, has been
gathering momentum, the prices are rebounding faster. Now, they have risen to
Rs. 290 and Rs 280, respectively.
The hike in diesel prices in September, 2012 seems to
have been leveraged by cement companies to reverse the downward spiral of
cement in Andhra Pradesh, which is among the largest producer and consumer of
the building material.
In neighbouring Tamil Nadu (TN), Maharashtra &
Karnataka, the prices have been steadier, hovering about Rs. 280-Rs.300.
Transportation Costs, Power Cuts..!
Industry sources said, ''The frequent power cuts and the
consequent use alternatives as also the rise in transportation costs have
forced cement companies to hike prices".
With construction activity expected to resume after
Dasara in India, cement manufacturers are bullish. But consumers (buyers) and
real estate companies will be at the receiving end.
Src: Hindu
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