Cement Prices to Increase in April 2025 as Government Initiatives Boost Demand

The cement industry is bracing for a potential price hike in April 2025, driven by increasing government spending and rising demand for construction materials.

According to a recent report by Nuvama, this surge in demand is expected to push cement prices up across various regions, with price increases likely to occur by April 2025. The report points out that while cement prices experienced a temporary decline in March 2025 following three consecutive months of growth, the outlook for the sector remains optimistic. “The dip in March can be attributed to the year-end volume push,” the report explains. “However, with the government’s ramped-up infrastructure spending, demand is expected to pick up, and price hikes are expected in April, possibly starting on April 25.”

Although prices are still down 6.5-7% year-on-year, industry players have employed strategic cost-efficiency measures that are expected to cushion the effects of lower realizations. These measures are anticipated to help maintain profitability even as prices remain volatile. However, the sustainability of these anticipated price hikes remains uncertain, as market dynamics continue to evolve. The cement sector is expected to see regional variations in price adjustments. In the eastern region, there was a fall in prices in March 2025, with prices dipping ₹5-7 per bag after seeing price hikes in January and February. Despite this, the demand side is showing positive signs, with dealers expecting a partial reversal of price drops by the end of March. They also anticipate price hikes in April, with expected increases of ₹20 per bag, split into two ₹10 increments.

In contrast, the southern region is likely to experience a ₹30 per bag hike in cement prices within the trade segment. The demand in the south has remained steady, and an uptick in construction activity is expected as the new Andhra Pradesh government’s project announcements come into play by FY26. The report further suggests that cement prices in the southern region could see a more substantial rise due to ongoing and upcoming government infrastructure projects. In the northern region, the cement market showed growth both month-on-month and year-on-year in March 2025. Stable pricing has supported this upward trend, and experts predict price hikes ranging from ₹5-10 per bag. However, dealers in the northern region are cautious about these hikes being sustained in the long run, as fluctuating demand could lead to price corrections.

The central region, which experienced subdued demand in March, witnessed a ₹3-5 per bag reduction in prices. However, there is a forecasted price hike of ₹10 per bag in the region by April 2025. Despite the projected price increase, dealers remain uncertain about its sustainability, given the slow pace of demand recovery in the central zone. Meanwhile, the western region saw a rollback of ₹2-3 per bag in prices in March 2025, which was a reversal of hikes taken earlier in the month. Despite the decrease in prices, no major price hike announcements have been made in this region as of April 2025, and industry experts are observing the situation closely. Volume push in March 2025 played a role in the price correction in the western region.

As the end of the fiscal year approaches and government spending accelerates, the cement industry is expected to see an uptick in demand, leading to higher prices in the coming months. This shift in demand is largely attributed to the government’s infrastructure investments, which are expected to stimulate construction activity nationwide. Cement prices are closely tied to such large-scale projects, and with the government’s push for development, it is anticipated that the construction sector will see growth, thus driving the demand for cement. However, despite this optimism, the industry remains cautious, as the long-term sustainability of price hikes will depend on factors such as raw material costs, market competition, and regional supply-demand dynamics. Industry experts suggest that while price hikes in April 2025 are likely, the extent to which these increases will persist will depend on various market variables.

The cement sector in India is navigating a complex landscape, with price fluctuations expected in the near future. Government spending and infrastructure projects are set to play a critical role in driving demand and influencing pricing. While the short-term outlook remains positive, it is essential for stakeholders to monitor the evolving market conditions to assess the sustainability of price hikes in the coming months.

Cement Prices to Increase in April 2025 as Government Initiatives Boost Demand