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Maharashtra cement prices to rise again

NetScribes/Kasturirangan P

Cement manufacturers in Maharashtra plan to increase prices by another Rs 10-15 per 50-kg bag by the next two weeks. This comes close on the heels of last Wednesday's increase of Rs 10 per bag. Marketmen say that this time around the industry is firm on the plan.

This is likely to prompt distributors to stock up more before the next price rise is implemented. Also, market reports from Bombay indicate that there has been a rise in genuine demand for cement with close to 280,000 tonnes sold in October 2000 over 250,000 tonnes in September 2000.

Dealers say that since the price increases were for Maharashtra state, cement players from outside the state would be tempted to sell to major regions like the Vidarbha and Konkan.

The major players in the Bombay market - ACC, Grasim, Gujarat Ambuja and L&T - have just increased their prices by Rs 10. While ACC, Gujarat Ambuja and L&T (Rs 148 per 50-kg bag) command a premium in the Bombay market, Grasim's Rajashree Cement (Rs 143) and Saurashtra Cements (Rs 141) sell a few rupees lower.

Industry sources reveal that a series of meetings between the manufacturers on Wednesday resulted in the latest price rise. It was decided that prices would be increased in two phases - by Rs 10 first and thereafter by another Rs 10-15. The first price rise has just been effected.

Being a strategic market, Bombay attracts close to 30 cement players, who bring in more rakes when the prices are buoyant. But dealers maintain that this time the companies are firm on holding on to higher price and increased supply - in terms of a few more rakes from small players -will not pull down the prices.

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