Cement News

cement prices: Cement prices moderate in November as demand slows during festive period


Cement prices have corrected across most regions by an average of 2% in November as demand slowed down amid the festive season and elections in some states, dealers said.

This comes on the back of sharp – up to 20% – rise in prices and steady demand in September and October, following patchy rains.

The demand for cement is usually muted in monsoon months. Some moderation in prices was expected as the previously taken price increases had impacted demand negatively, said dealers.

Prices, though, are currently around 5% higher than the average in the September quarter, and are expected to pick up again in December, they said.

The average cement price in the country is currently about ₹382 for a 50 kg bag, almost unchanged from November last year, but down marginally from ₹386 a bag in the current quarter.

High government spending on infrastructure is supporting cement demand. In the first half of the current fiscal, cement production is up 11.5% from a year earlier, according to the core sector data released by the government last month.In north India, the decline in labour availability in the festive period and the pollution-triggered ban on construction activities around the Delhi-NCR region have impacted demand.While prices are lower by around ₹13 per bag on a month-on-month basis, they are still about ₹23 higher as compared to the September quarter, Nomura Financial Advisory said.

In eastern India, both demand and prices have seen a slowdown, especially in the trade segment. While manufacturers rolled back price increases in Bihar and Jharkhand completely, those in West Bengal and Odisha have also dropped sharply in certain pockets.

The eastern region had seen some of the sharpest price hikes in the last two – three months.

In the southern parts of India, prices have hovered near an all-time high at around ₹396 per bag. “On the demand front, there has been some recovery witnessed post-Dusshera led by new project launches but lower infrastructure spending by state governments due to assembly elections in December has negatively impacted demand,” Nomura said.

Central India was impacted by weak demand from the key states of Madhya Pradesh and Uttar Pradesh. While the Madhya Pradesh government has not announced any new projects due to the elections, budgetary constraints for the Uttar Pradesh government led to lower spending on infrastructure projects, analysts said.


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