CHENNAI: Amid criticism over soaring cement prices, the past president of cement manufacturers association N Srinivasan said a drop in demand for cement rates will bring down the rates of the key construction material. “It depends on the market. If demand collapses, prices can also drop. Today, utilization levels are higher, demand is there so its price is a little firm,” he replied to a query on when the spiralling cement prices would stabilise. “I see signs of, in the case of our (cement) industry at least, the demand for infrastructure is going up very sharply. It is propelling increase in consumption.” The prices of a 50kg bag has increased by 50 across all the brands hitting a high of 410 in the last one month. This drew strong criticism from developers’ body and builders association, which have charged the cement manufacturers with cartelization. “There is no cartelization. It is an open market,” he said.
Published by TOI