Cement price may go up by 1-2% in November: Crisil Research

NEW DELHI: The average price of cement, which stands at Rs 280 per bag of 50 kg, may go up by between Rs 3 and Rs 6 per bag in the current month on increased construction activity, according to report by Crisil Research. "Post the festive season, the construction activity and consequently cement demand will gain traction, which could lead prices to rise by 1-2 per cent, on a month-on-month basis, in November, 2011," Crisil Research Head Ajay D'Souza said. The average retail price of cement in the country rose by about six per cent month-on-month to Rs 280 per bag in October 2011. "Notable price hike in the Northern region in October, 2011, largely supported the pan-India price increase," he said, adding that on a yearly basis, the average pan-India retail cement price recorded an increase of almost 15 per cent during the month. D'Souza said the domestic consumption of cement in October remained almost flat resulting in just three per cent increase in demand during the April-October period of the current fiscal. "The subdued pace of construction activity in real estate and infrastructure segment is largely instrumental for this lacklustre demand," he said. India's total consumption of cement in October this year was 18.1 million tonnes, just 0.6 per cent up over the same month last year. It consumed 123 million tonnes cement during the April-October period of the current fiscal.