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Cement Prices Rise Again
Posted by Pradeep Sadanapalli | June 24, 2007 | 255 views
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Loading ...Reflecting the construction fever that has gripped the city and also the State, the cement consumption has risen sharply during the last year, writes T.Lalith Singh.
While some relief has been ushered onto the real estate scene with the rise of property prices checked to a large extent in last couple of months, the rise in cement appears to be in no mood to be stop its upward march.
Based on the brand and availability, a bag of cement is being sold in a price range of Rs. 225 to Rs.230 these days. This in the backdrop of unprecedented demand for the construction material and the mismatch in supply as production capacity has not risen to the meet the increased demand, the industry feels.
There has been an incremental rise, in the form of a rupee or two per month, in the prices for the last three months and those hard pressed for cement are said to be paying more than Rs.230 too. The failure of monsoon to take off in right earnest so far also has kept the demand up. Usually the construction activity slows down during the rains but with clouds refusing to open up in the last one week, the usual seasonal lull has stayed away too. “Till few years back, the off-take used to go down by 30 per cent during this season but the trend is such these days that, construction will be resumed the moment downpour cease,” says a cement manufacturer.
Reflecting the construction fever that has gripped the city and also the State, the cement consumption has risen sharply during the last year. “The consumption in the State which was around 12 lakh tonnes in April 2006 has gone up to 15 lakh tonnes this April. It further rose a bit to stand at 15.25 lakh tonnes in May,” says Ramesh Chandro, Managing Director, Ckoramaandel Cements and former President, All India Mini Cement Manufacturers Association. Apart from the frenzy generated by the private builders who have hands full of work along the city outskirts and other major towns, Indiramma, the housing scheme for weaker sections is cornering a considerable slice of the stocks in the State.
The lining up of several mega projects such as International Airport, Elevated Expressway and irrigation projects also have been cornering a chunk of the available stocks.
SOURCES:
The Hindu
Topics: Construction, Real Estate |
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