Cement prices are falling for the past few weeks as the commodity is not in demand due to the rainy season.
The prices that were flying high in April-May, have now come down to its lowest level of the season.
On Tuesday, a 50 kg bag of cement in bulk buy category was available in the price range of Rs 260 to Rs 290 (including 28 per cent GST). The bulk buy or not trade category is meant for bulk buyers such as Government contractors, builders and developers, institutions, etc.
Under this category, the consumers have to lift a minimum quantity of 1,000 bags of cement in a month. It is important to note that the majority of cement is sold in this category.
One of the buyers told The Hitavada that the leading manufacturers in Maharashtra are selling cement at the rate of Rs 290 per 50 kg bag while other manufacturers are selling it at a price of Rs 260 per bag.
In addition to this, manufacturers in Chhattisgarh are selling it at a price of about Rs 250 per bag. “These are the lowest rates of cement we have seen in the recent past. It is mainly because work at most of the construction sites has been suspended due to rains,” said one of the buyers, who preferred not to be quoted.
During monsoon, there is non availability of labourers in Vidarbha region and the pace of construction activities becomes very slow. Similarly, many outstation labourers return back to their respective villages to get engaged in agricultural activities. Due to this, work at the projects gets hampered and demand for cement comes down. Apart from this, at many locations, construction activities become impossible due to water logging which further pulls down the demand for cement. In the retail trade category, a 50 kg of the leading manufacturers was available at a price of Rs 350 (including 28 per cent GST).
The low prices of cement are expected to maintain these levels for next few weeks. But as soon as the monsoon season ends, the cement prices are likely to go up. Apart from cement, steel prices have also come down from its recent peak.