Cement prices in India have seen a marginal rise in December despite subdued demand, with average trade prices increasing by ₹5 per bag to ₹342/bag across the country. The eastern and northern regions have led this surge, while dealers remain sceptical about the sustainability of these hikes amid weak construction activity and labour shortages.
In the eastern region, cement prices rose significantly by ₹16/bag, averaging ₹311/bag. Kolkata witnessed the sharpest month-on-month increase, but concerns linger over market absorption. Dealers in cities like Patna and Raipur reported a year-on-year volume decline of 10%, underscoring persistent demand challenges. Although volumes improved marginally in Kolkata in late November, earlier attempts to raise prices in October and November had failed, raising doubts about the success of the current hike. The northern region followed with a ₹13/bag increase, pushing average trade prices to ₹363/bag. Prices in Delhi-NCR rose steeply by ₹20/bag, with Punjab and Rajasthan also seeing ₹10/bag hikes. However, demand in these markets has been impacted by seasonal factors, including stricter construction restrictions owing to poor air quality and ongoing labour shortages.
Conversely, in southern markets, prices have remained flat due to sluggish real estate activity, particularly in Hyderabad. Dealers predict no upward movement in prices, given the lack of demand triggers. Similarly, the western region experienced stagnant pricing, while the central region recorded a modest ₹2/bag drop in average trade prices. Industry observers attribute the muted demand to seasonal factors and macroeconomic pressures but note that cement manufacturers are testing price hikes to offset rising input costs. Whether these increases can be sustained will depend on demand recovery, expected only by January, and improved construction activity. As the industry grapples with these headwinds, all eyes are on the January demand outlook to stabilise market conditions and validate the recent price adjustments.
