Cement demand is expected to rise as government spending ramps up, which could lead to price hikes across regions in April 2025, according to the Nuvama report. It added that following a dip in prices in March after three months of improvement, the outlook for the coming months appears more optimistic.
The document read, "All in all, prices slid in Mar-25 (after improving over the past three consecutive months) on account of the year-end volume push. Going ahead, demand is likely to improve as government spending increases. Per current trends, price hikes will likely be implemented across regions on April 25."
While prices are still down 6.5-7 per cent year-on-year, the strategic cost efficiency measures implemented by industry players are anticipated to help mitigate the impact of lower realisations.
Furthermore, the report mentioned that the sustainability of the upcoming price hikes will be uncertain due to evolving market dynamics.
The Eastern region reported a fall in prices of Rs 5-7 per bag on March 25 after reporting price hikes in January and February. Moreover, positive signs have emerged on the demand side, which picked up from mid-March 25. According to the report, dealers expect a partial reversal of prices by the end of the month despite expectations of price hikes of Rs 20 per bag (Rs 10 per bag in two tranches) in April.
The report suggests that price hikes of Rs 30/bag in the trade segment are likely in the southern region. Demand has been steady, and an uptick in the projects announced by the new Andhra government will be visible from FY26 onward.
In the northern region, demand improved MoM and YoY on March 25, backed by stable pricing.
The report added that a hike of Rs 5-10/bag is anticipated during the month, but dealers do not expect this additional price hike to be sustained. Demand remained subdued in March 2025 in the Central region; so, prices were slashed to the tune of Rs 3-5/bag.
A price hike announcement to the tune of Rs 10/bag is likely in the central region, the report said, adding that dealers do not anticipate it to sustain.
Demand is likely to improve from the end of April 2025, and eventually, pricing shall follow the demand uptick.
The western region logged a rollback of prices to the tune of Rs 2-3/bag (reversal of hikes taken at the start of Mar-25) on account of volume push. In the region no price hike announcements have been made yet as of April of current year.
