Cement companies can increase the price of cement for the second consecutive month by forming a cartel. Let us tell you that there may be a rise in their prices from October 1. Its direct impact will be seen on construction works. Apart from this, it is believed that with the increase in cement prices, there may be a softening in the prices of rebar.
Despite low demand, companies are once again going to increase the price by Rs 15 per bag from October 1 by forming a cartel. The companies have informed the dealers about this. Cement companies say that they are going to increase the price due to increase in production cost. The price of cement, which was sold at Rs 310 to Rs 320 a bag till August, has reached Rs 360 per bag in retail after a simultaneous increase of Rs 50 on September 1.
Now with the increase once again by the companies, it will reach Rs 400 per bag at retail in the market. This is sure to have an impact on construction work. In fact, cement companies increase prices only during the end of the rains, because after this the construction work picks up pace.
Chhattisgarh produces 20 percent of the country’s total requirement. Let us tell you that Chhattisgarh is among the major states of the country in terms of cement production. About 20 percent of the country’s total cement requirement is produced here. There are 14 cement companies operating here, whose annual production capacity is about 260 lakh tonnes.
Andhra Pradesh is the largest cement producing state in the country. Rajasthan is the second, Karnataka is third and Madhya Pradesh is the fourth highest producing state.
Bar prices may decrease
At present the rebar is being sold at Rs 59 thousand per tonne in the open market and at Rs 56 thousand 500 per tonne in factories. Traders say that the prices of rebar may fall further in the coming days. Currently, due to weak demand in the market, the prices of iron ore are also falling. Its effect will be visible in the market. Let us tell you that in the last month of April the rebar had reached Rs 64 thousand per ton.
What is a cartel?
An organisation of producers, sellers, distributors or service providers that, through mutual agreement, limits and controls or attempts to control the production, distribution, trade, sale and price of services or goods.
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