Cement cos slash prices by Rs 25 per bag

Source: The Hitavada      Date: 12 May 2017 10:08:52

Business Bureau,

THE cement companies have resorted to lowering prices due to slump in demand. They have slashed prices of cement by Rs 25 per bag in bulk quantity. Cement companies of all major brands had lowered prices and were being quoted at Rs 290 per bag in bulk (more than 1,000 bags) compared to Rs 315 per bag as of May 1, said sources on the condition of anonymity.

Sources said that the prices of cement were reduced on account of less physical off-take in the market. The prices above Rs 300 per bag discouraged buyers from purchasing cement which resulted in overshooting of costs and the budgets going haywire.

Construction activity had not picked up enough to sustain demand at higher levels in the market. Builders were also going slow on residential projects due to sluggish demand for homes.

The major cement brands are Birla Gold, Ultratech, Ambuja, ACC, etc.
In retail, the cement prices were being quoted at Rs 340 per bag, lower by Rs 10 compared to Rs 350 per bag as of May 1. Furthermore, Nitin Gadkari, Union Minister for Road Transport, Highways and Shipping had warned the cement companies not to raise prices by forming cartel and fixing prices. This also pressurised cement companies to cut prices, said sources.