Wholesale prices of cement have fallen by 4-5 rupees per 50-kg bag in Delhi and Bengaluru on account of muted demand. While cement major UltraTech Cement is selling its 50-kg bag of cement at Rs 368-370 per bag in Delhi, the same bag is being sold at Rs 390 in Bengaluru. On the other hand, cement demand in Mumbai is better and there has been no recent decline in wholesale prices of the building material, according to the cement dealers.
“Cement prices were increased twice in Delhi in April. But the cement companies had to cut the wholesale prices by Rs 4-5 a bag because of sluggish demand in the capital,” a cement company marketing professional based in Delhi told Financial Express Online, requesting anonymity.
There was a surge in cement prices by Rs 60 in the month of April. During last month, first the prices were hiked by Rs 35 per 50-kg bag, then during the month-end the rates were increased by Rs 25 per 50-kg bag in the national capital. But on account of tepid demand for the building material, the cement makers had to cut the wholesale prices.
In Bengaluru also, the wholesale prices of cement have been reduced by Rs 4-5 per bag due to slowdown in demand. Besides UltraTech, other brands such as ACC is selling at Rs 390 per 50-kg bag while Shree Cement is selling at Rs 350 per 50-kg bag, according to the cement dealers based in Bengaluru.
However, demand is better in Mumbai and the prices have been rising since the onset of April, the cement rates have risen by around Rs 30 in the last one month. While a 50-kg bag of UltraTech is selling at wholesale price of Rs 380 per 50-kg bag, ACC and Ambuja Cements are also selling at the same price. The wholesale cement prices of other brands like Shree Cement and JK Lakshmi stand at Rs 350 per 50-kg bag.
“The cement demand is good in Mumbai. Prices have only been increasing since April as this is the construction season. The prices will remain firm till June second week. After the monsoon season begins, the cement rates might go down,” one cement dealer told Financial Express Online.