War effect: After steel, now the price of cement will go up, it will be more expensive to build houses

Cement prices rose by Rs. 400 will cross

The crisis in Russia and Ukraine has not only made driving heavier, but also costly to build a house. The rise in prices of raw materials like imported coal and pet coke could lead to a 6-13 per cent rise in cement prices in the next one month and the price of a sack of cement could cross Rs 400.

According to the cement industry, coal and pet coke prices have risen by 30-50% in the last six months. Crisil’s report shows that the price of cement has risen to Rs 390 per bag in the last one year. Cement prices are likely to rise further by Rs 25-50 across the country in the next one month.

In fact the production of clinker requires coal and pet coke which are important raw materials for the cement industry. According to cement companies, rising petrol and diesel prices have added to their woes. There has been a significant increase in the cost of packaging materials, transportation costs and delivery costs.

Brent crude rose more than 75 percent in the last fiscal year. Pet coke prices rose an average of 43% in the U.S. market during the January-March quarter.

Forced to raise prices: Cement companies
U.S. pet coke has risen 96% in the last fiscal year. Domestic pet coke prices also rose 26% in March and 21% so far this month. Meanwhile, the price of imported petroleum coke has almost doubled in the last one year to 130 130 (9,951) per tonne due to high shipping fares.

There will be a slowdown in demand in the current financial year
According to Crisil Research Director Hetal Gandhi, the demand for cement has increased by 20% in the first six months of the financial year 2021-22. But the second phase remained sluggish due to unseasonal rains, sand and shortage of labor. As a result, demand growth has slowed to 7% for the entire financial year.