According to AKD Research, cement prices in the northern region have increased by Rs 10 per bag. Previously, cement prices had largely remained stable at an average price of Rs 505 per bag in February 2018 after declining further by Rs 10 per bag in January 2018.
This recent hike of Rs 10 per bag means that cement prices in the region now stand at an average of Rs 515 per bag. Manufacturers in the northern region are confident that they will be able to further increase prices by Rs 10 to 20 per bag along with adjustments in their market shares in the near future as new capacities start to come online.
However, cement prices in the southern region remain unchanged and are unlikely to increase in the near term with an average cement price in south already at a premium of 14 per cent against its northern counterparts.
In the past, cement prices in the northern region declined by almost 11 per cent or Rs 60 per bag since June 2017, contrary to the southern region where prices have so far remained stable.