Cement Prices Likely to Increase from Wednesday
Several companies and distributors said that a sharp rise in production costs are the primary reason for rise in cement prices.
Hyderabad: Cement prices across the city are expected to increase from April 1 due to rising input costs, increasing demands and global supply disruptions due to the ongoing tensions in West-Asia. According to recent reports, leading manufacturers are preparing to raise prices as early as this week. The increase is being led by major players such as UltraTech Cement, with other companies likely to follow suit.
Several companies and distributors said that a sharp rise in production costs are the primary reason for rise in cement prices. The ongoing conflict in West-Asia has disrupted supply chains, making key materials such as fuel and packaging more expensive.
A report by Nuvama has cited that prices of petcoke and coal, which are essential fuels in cement production, have drastically increased, while shortages of polypropylene have raised the cost of cement bags.
The impact on construction is expected to be immediate. Vamsi Krishna, a cement distributor from LB Nagar, said “cement typically accounts between 5-10% of total construction costs. So even a small rise can affect overall budgets. This hike in cement can make projects 6% to 8% more expensive.”
He further said that contractors are already under pressure with many projects being based on fixed budgets, and any sudden rise in material costs may force them to renegotiate contracts.
Despite these challenges, demand for cement remains steady due to ongoing real estate and government infrastructure work. However, the current volatile global markets can lead to further hike in prices for cement and other essential construction material.
