Cement Prices Freeze - Peeping Into My Mind

Day Before, Friday 9th March accidently I happened to watch CNBC [CNBC-TV18] India. A news which picked my attention holds the title of this post.

Indian cement companies has now agreed to hold the cement prices for one year. Which means that even if the cost of input raw materials increase they’ll stick on to the current price.

After the budget presentation by finance minister these cement manufacturers had increased the cost per tonne drastically leading to trouble for developers and common man. Now, though cement companies dint agree to roll back the cost, yet this is a relief statement for the troubled ones.

The agreement also says that in case any concession is granted on levies or other duties on cement later this year, the profit has to be handed over to the customer. Eventhough now price per pag of cement has reached Rs.190, it is a deep relief for the customer since no more price hikes wont happen atleast for another year.

This agreement by cement companies had its own impact in the share bazaar as well. The fallen cement prices may take a year to make up, otherwise some big deal hits them. Hence cement investors, look before you leap.

• Happy Vishu