Cement price hikes may not be sustainable: Dealers body

On account of continued margin pressures, most cement companies are hoping to increase prices for the first time in calendar year 2011, reports CNBC-TV18. However, this hike may not be sustainable. "Logistical inadequacy is causing price hikes in the cement sector," says Sanjay Ladiwala president of the Cement Stockists and Dealers Association of Mumbai.
 
This year, though demand will be lower as compared to last year, Ladiwala sees growth in demand at grass-root level post monsoon. "In the near future, however, there won't be any pick up in demand."

"The year-to-date demand growth is just 5% as against 10% last year. For the full year, we are expecting it will be close to 6.5%. And for FY12 we are expecting it close to 9% on the low base effect," adds cement analyst Rupesh Sankhe of Angel Stock Broking.

Source: Moneycontrol/ CNBC-TV18