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Informist, Wednesday, Sept. 3, 2025

 

--Cement dealers: Unlikely to implement price hikes in September

--Dealers: Cement prices under pressure in August due to rains

--Dealers: Demand for cement weak across the country due to monsoon

--Dealers: May attempt price hike only on signs of demand recovery in Sept

--Dealers: Cement cos had planned price hike of INR 40-INR 50/50-kg bag Sept

--Dealers: Cement price hike may be possible only in October

--Dealers: See cement demand revival after monsoon, festival season

By Narayana Krishna and Anshul Choudhary

 

HYDERABAD/MUMBAI – Hit by heavy rains, an extended monsoon, and reluctance of dealers, cement companies across the country are unlikely to hike price in September, multiple sources told Informist.

 

Cement manufacturers across regions had planned a price hike of INR 40-INR 50 per 50-kg bag in September. However, weak demand due to heavy rains across regions, which resulted in slower construction activity, has made it difficult to go ahead with the price hikes, dealers said.

 

"Given the June quarter earnings, we thought it was prudent to go for a hike. We are still waiting for the market to respond. Any indication of demand revival, we will go with the planned hike. In fact, we have already told dealers about the possible hike," a top cement manufacturer based in Hyderabad said.

 

Among companies, UltraTech, Orient Cement, KCP, India Cements, Sagar Cements, Ramco Cements, JK Lakshmi, NCL Industries, and several privately-held companies with significant presence across markets have planned price hikes, dealers said.

 

Higher costs of raw materials such as pet coke and gypsum are likely to increase the pressure on the earnings of cement companies for the September quarter, the official said, adding that it is challenging for companies to retain the earnings trend if the price hike is not implemented as planned. Pet coke prices have inched up to around $120 per tonne from $110 levels in August, the official said.

 

"We are struggling to retain the prices at August levels, and it is unlikely we will take a fresh hike given the current demand situation," said a dealer selling multiple brands in Chennai. While cement manufacturers are testing the waters by asking dealers to go with a hike of INR 10-INR 15 in some regions, the initial response is negative due to weak volumes.

 

Given the current demand situation, several companies are hesitant to ask dealers to implement the price hike. In fact, some companies have not yet informed them about the hike, sources said.

 

According to a dealer in Mumbai's Powai area, companies have asked for a hike of INR 15 for September, but this may not materialise as demand is weak. A channel check with dealers in the Bandra and Kurla areas of Mumbai shows cement companies are yet to inform dealers of a possible price hike.

 

"Any potential price hike would be considered only after October. With the impact of monsoon-related disruptions expected to ease and the festive season drawing to a close, demand conditions may improve, thereby creating room for an upward revision in prices," a dealer in Hyderabad said.

 

As of Wednesday, prices of 50-kg cement bags ranged from INR 300 to INR 360, depending on the brand and location of the sales point, according to dealers.

 

According to reports, cement prices in the country corrected by INR 6 to INR 10 per bag month-on-month in August on an average. Markets in the east like Bihar and West Bengal saw significant correction of up to INR 25 per bag in some cases, a senior official of a Visakhapatnam-based cement company said. Besides the monsoon and weak demand, competition among companies to improve volumes led to a price drop in eastern markets in August, the official said. 

 

The South Indian market showed a mixed trend as Tamil Nadu saw a marginal hike of INR 5 rupees per bag, and Telangana, particularly Hyderabad, saw a price correction of INR 10 to INR 20 per bag month-on-month in August, dealers said. The price fall was higher in the institutional sales segment, dealers said. 

 

At 1050 IST, shares of UltraTech were at INR 12,725 on the National Stock Exchange, almost flat from the previous close, while India Cements was up 3.1% at INR 397.15. Shares of ACC were up nearly 1% at INR 1838.60 and Ambuja Cements was at INR 573.55, up 1%.  End

 

US$1 = INR 88.04

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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