Cement prices have been steadily moving northwards since November amidst allegations of cartelisation by leading players. The Rs 10 increase in prices in December (effected in two tranches) follows the whopping Rs 20 hike effected in end November.

According to a Gujarat Ambuja official: "Prices are holding in the market. Demand is good and we are supplying as per demand." Industry sources pointed out that the supply situation was still `alarming' but it was expected to assume normalcy in due course.

Industry analysts pointed out that evidently cartelisation continues to hold good in the Mumbai market, despite initial reports that it might break down as in the past.

The cement industry, which is hoping to see a favourable budget next year, feels that there would be increased offtake from December onwards with construction activity likely to pick up. Shortage in supplies of cement were noticed during the week November 27 and December 3, in Maharashtra when dispatches were stopped.

The markets which have seen the cement scrips on an upswing following the price hikes on Monday, witnessed major gains for the ACC and L&T stocks. ACC posted a 7.79 per cent rise on the BSE to close at Rs 156.35 against its previous close of Rs 145.05. The L&T scrip reported a 5.42 per cent rise to close at Rs 214.95 against its previous close of Rs 203.90. Gujarat Ambuja on Monday declined marginally to close at Rs 158.80 against its previous close of Rs 158.