Cement companies are looking at all options to raise prices but the current demand-supply scenario and the government clampdown is making things difficult for concrete makers.

The slowdown in housing demand coupled with the monsoons have dampened the fortunes of cement makers who are now forced to cut prices to cope with the lackluster demand.

Cement prices have dipped by Rs 5-7 per bag in the western region and earnings per bag also hit in the eastern and northern markets.

Moreover, industry insiders feel that prices could drop further in the coming weeks.

For cement makers hit badly due to rising coal and oil prices the bigger worry is that supplies from new capacities will kick in by the year end and that could distort the demand-supply mismatch even further.

But companies are hopeful that demand will soon start catching up to make room for price increases.

For companies like Ambuja Cement with a strong presence in the north and west, the other big worry is the rising imports.

Cement companies are clearly pushed to the wall and unless demand improves significantly over the next few weeks to enable them to raise prices post-monsoon, they will have to live with sliding profitability and sinking margins.