Cement manufacturers may announce another price increase of Rs 5-20 per bag across several markets in October, according to a report by Centrum Broking. The expected hike comes after cement prices increased by around Rs 7 per bag in September.
However, whether companies can successfully implement and maintain the higher prices will largely depend on demand recovery and dealer acceptance. Rising fuel costs are also expected to remain an important factor influencing pricing decisions.
Centrum Broking said that the recent increase in fuel prices could make it more difficult for cement companies to sustain higher billing rates. The report highlighted the implementation and continuation of price hikes as a key factor to watch in the coming weeks.
Cement Prices Rise in September
Cement pricing showed improved momentum during September after remaining mostly stable in July and August. The all-India average trade price increased by Rs 7 per bag month-on-month to Rs 356 in September.
According to Centrum’s channel checks, prices increased in both trade and non-trade segments during the month. Non-trade prices recorded comparatively stronger increases across most markets.
However, the rise in company billing prices has not been completely reflected in customer prices in several regions. Dealers reportedly continued selling at earlier rates in some markets as they focused on meeting quarter-end volume targets.
Q2FY27 Cement Demand Shows Mixed Trends
Centrum Broking said the weakness in cement demand during Q2FY27 was less severe than the normal seasonal slowdown. Construction activity improved in a number of markets towards the end of the quarter, creating expectations of further price hike attempts in October.
Demand remained largely range-bound across several markets during July and August. September brought mixed regional trends, with rainfall playing an important role. Higher rainfall affected construction activity in some areas, while relatively lower rainfall supported demand in others.
Despite the improvement in September, the average all-India trade price for Q2FY27 stood at Rs 351 per bag, which was Rs 1 lower sequentially. Weak pricing during July and August offset the gains recorded in September.
South India Records Biggest September Increase
South India reported the strongest price increase during September, with cement prices rising by Rs 11 per bag. West India followed with a Rs 9 per bag increase.
Central, East and North India each recorded an increase of Rs 5 per bag during the month.
The October pricing outlook will depend heavily on the pace of demand recovery and dealers’ willingness to accept higher prices. With fuel costs remaining elevated, the ability of cement companies to implement and sustain the proposed price increases will remain an important factor for the industry.
Disclaimer: The information in this article is based on the cited report and is provided for general informational purposes only. Readers should verify the latest prices and market developments from reliable sources before making any financial or business decisions.