Cement costs could ascend by up to 10 percent in the next six months in stock exchange market to make up for the expanded fuel and transportation costs, as indicated by the best official of an industry body.
The Cement Manufacturers Association said that the business has seen a 14 percent development in the principal half of the year finished March 2019—the primary twofold digit development since almost nine fiscals prior—in this way giving a chance to the redress of costs which have stayed dormant in the last six to seven years.
CMA President Shailendra Chouksey told PTI, “If not for anything else, there is a very dire need to correct the (cement) pricing. In the last one year, we have seen 60-70 percent rise in the cost of fuel. At least to recover some portion of this increase, we need to increase the prices of cement.”
There is a surplus limit in the cement business in the stock exchange market, however, no valuing power, Chouksey stated, including even in the wake of seeing get popular, “costs are as yet mulling at low levels”. In Delhi, a 50-kg cement sack offers for not as much as Rs 300, as of now, he guaranteed.
In the national capital, a 50-kg cement sack offers for under ₹300 at present, Chouksey claimed. “Today, we are selling a cement bag practically at the same price that we sold in 2011-12. That is mainly on account of the huge surplus in the system,” he said.
“Ideally, the following a half year is a decent period for good utilization all around believing that it will be a decent period at some conceivable cost redresses,” Chouksey reported to Livemint.
Expressing that the health of the cement business in stock exchange market isn’t as great, Chouksey stated, “We have been seeing that lot of units have been put on the block. It indicates the margins are not very healthy, I think that will continue for a while till such time the prices are corrected.” He additionally included that he would “not be surprised” if greater cement organizations go for bankruptcy procedures, according to the report of Bloombergquint.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]