Cement prices could see another increase in October as construction activity is expected to pick up after the monsoon. Cement manufacturers are considering a price hike of ₹5 to ₹20 per bag, although the extent to which the increase holds will depend on market demand and dealer response.
The possible revision follows an increase already recorded in September, when cement prices rose by around ₹7 per bag to an average of ₹356 across the country.
Demand and Dealer Response Will Be Crucial
According to a report by Centrum Broking, cement companies may attempt another price increase in October. However, whether the higher prices remain in place will largely depend on construction activity and whether dealers accept the revised rates.
Demand remained subdued in several markets during July and August, while construction activity improved in some regions during September. Weather conditions also played a role, with heavy rainfall disrupting construction in certain areas, while markets receiving less rain saw activity improve.
The report noted that both trade and non-trade cement segments recorded price increases. The non-trade segment saw some of the sharper increases across several markets.
Rising Fuel Costs Add Pressure
Higher fuel costs have emerged as another factor affecting cement companies. Fuel prices have increased significantly in recent weeks, potentially adding to manufacturers’ operating expenses.
The higher input costs could encourage companies to seek another price increase. However, the ability to pass those costs on to customers will depend on demand conditions and the willingness of dealers to accept higher cement prices.
Delhi-NCR Construction Ban Could Affect Demand
Cement companies will also have to consider the upcoming construction restrictions in Delhi-NCR. The Delhi government is scheduled to impose a construction ban from November 1, 2026, to January 31, 2027, because of heightened pollution levels during the winter period.
The restriction is expected to temporarily halt construction activity in Delhi-NCR, which could reduce cement demand in the region. As a result, companies may have to reassess pricing or consider discounts during the restricted period.
For October, the key factors will be the strength of construction activity, regional demand, rainfall conditions and whether dealers accept the proposed price increases.
Disclaimer: The information in this article is based on the Centrum Broking report and market details available at the time of publication. The proposed cement price increase is subject to market conditions and may vary by company, region and dealer. Actual prices may differ from the estimates mentioned above.