Any developing country needs to be united and must be strong enough to face the difficulties to end up as a developed nation. India has been doing it for many decades and has come a long way in its growth journey with its strong youth and strengthened infrastructure. Developing infrastructure can boost the economy and pricing of the cement can play a very important role.
From a common man to an industrialist, fluctuation in cement prices can affect their daily lives directly or indirectly. Therefore, one must be aware of all the factors that can affect the cement price so that relative measures are taken to avoid such difficulties. We at sugna TMT is one of the highly recognized steel manufacturing industry and we believe that any industry must not suffer losses due to the below-mentioned factors.
Any loss suffered might indirectly affect other industries related and can bring huge price fluctuation in all the other products affecting our lively hood. Hence, to avoid all such complications we have perused and listed some of the factors that affect cement prices in India. Let us go through them in detail.
Factors Affecting Cement Price In India
Government policies and regulations
India is the second largest country to produce cement as there is a high quantity of limestone throughout the country. As it is highly in demand, government policies must be able to make use of such opportunities and even slight changes might lead to fluctuation in the price. For example, if the government imposes a heavy tax on cement then there will be fewer buyers due to price increases which affect the whole industry.
Rising Fuel price
Yes, you heard it right. Rising fuel price is one of the important factors that can affect the fuel price as it is transported from one location to another. Though the limestone concentration is found throughout the country, other raw materials must be transported from one place to another and this requires fuel. These charges are imposed on the finished goods which are cement affecting the price.
Demand and supply
It is the basic factor that can affect any product and cement is also one of them. When the demand is high the supply is low and when the demand is low supply is high. This can affect the retailers and the industry’s profitability. To overcome this, there are many different approaches but all are proven to be partially effective.
Competition
The level of competition in the market also decides the price action of cement in India. Yes, the more the competition rises in the market less the price goes as everyone wants to sell their company’s cement in order to make a profit. Though there are several companies the demand for the product is too high and hence the fluctuation in price.
When it comes to the competition between steel industries Sugna TMT is never left out as it has made its mark in the market by delivering the best TMT bars. We at Sugna TMT always believed in united growth and have been taking all the necessary actions to achieve it. To know more, please visit the official website of Sugna TMT that is www.sugnatmt.com
High Energy Cost
High energy cost is the most important factor which directly affects the price of cement as the cement requires a huge amount of energy to intensify the process. The rapidly rising cost of energy can lead to less manufacturing of cement or a lack of energy to use. In both situations, the prices of cement will be hiked.
Geo-political Issues
When a country has to grow, then alone it cannot bear all the development as it might not have enough resources and might procure some projects for other companies abroad. If any issues arise between these two countries, the projects that are agreed upon shall be put on hold and the orders for the infrastructure development may have to rest in storage which might affect their manufacturing process.
Conclusion
Cement is the only key element that can build our homes and schools and is responsible for all the growth of a nation. India is developing and without cement, it is hard to think of a developed nation. Hence, every individual must be aware of all the factors that can affect the price of the cement in order to control it and make it available to all classes of people in the country.
Sugna TMT has been following the same guidelines and has worked towards it. If you wanna be one of the luckiest people to use a quality TMT bar, call us today to know more.