: The India Cements Ltd on Wednesday stated price of cement would enhance as each cement manufacturing facility faces “stress on cost” and the business was affected by the large influence of rise in coal price.
“The rise in cost (of coal) has taken place….the price of coal we had been getting was about USD 70-80 per tonne and went as much as USD 105; and from there it went to USD 135. Now, it is USD 250 per tonne,” stated vice-chairman and managing director of the cement-making firm N Srinivasan.
Elaborating on this, he stated the corporate was prudent as it has coal of about 4 lakh tonne which might produce 27 lakh tonne of cement clinkers. “We have 4 months of inventory, however past that we’re trying on the greater prices of coal. This will apply to all people (each cement-maker) not solely us (The India Cements),” Srinivasan, additionally managing director of the corporate, advised reporters.
Noting that the rise in cost of coal impacts cost of energy technology and cost of gas on the kilns, he stated.
“If you are taking cement business, some individuals have gotten one week’s inventory, (however) now we have acquired 4 months’ inventory. Companies which might be effectively stocked can rely on regular manufacturing within the coming months,” he stated.
“But right now, if you happen to step out to purchase coal, it will actually influence (your) cost of manufacturing. It is my estimate that already costs of cement have moved up, the rise in cost of manufacturing could be handed on (to prospects) by a prudent producer,” he stated.
To a question on whether or not he would foresee stress from the governments to extend cement costs, he stated, “TANCEM (State-owned Tamil Nadu Cement Corporation) has elevated the price and all I do know that TANCEM has recognised the rise in prices, and has elevated the price.”
To one other question, he stated, “I’m surviving as a result of I’ve coal which have been purchased at decrease cost. When it sells USD 250 coal, I will have to extend the price by Rs 30-Rs 40 a bag simply”, he stated.
(Only the headline and film of this report could have been reworked by the Business Standard workers; the remainder of the content material is auto-generated from a syndicated feed.)