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EquityWireCement supplies hit on maintenance in South India; Price hikes seen in Oct
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Cement supplies hit on maintenance in South India; Price hikes seen in Oct

This story was originally published at 11:26 IST on 28 August 2026
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Informist, Friday, Aug. 28, 2026

 

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--Dealers: Cement supplies low in parts of South India since Thu
--Dealers: Cement supplies low in South India due to maintenance of units
--Dealers in Andhra, Telangana face cement supply shortage since Thu
--Dealers: Cement prices seen unchanged till Oct on stable demand
--Dealers: Sees INR 10-INR 15 price hike around Oct-end
--Dealers: Cement prices under pressure as cos focus on volume growth
--Dealers: Cement demand muted in West Bengal amid curbs on construction
--Dealers: Cement demand stable in Punjab, seen rising post-monsoon

 

By Narayana Krishna, Avishek Rakshit, and Devanshu Singla

 

HYDERABAD/KOLKATA/NEW DELHI – Cement companies in some parts of the country opted to go for annual maintenance shutdowns or partial production halts, disrupting cement supplies in some parts of the country, cement dealers told Informist.

 

Cement supplies were stopped or reduced, particularly in Andhra Pradesh and Telangana, key markets in Southern India, a senior official of the Hyderabad-based cement manufacturing company said. Companies normally utilise around 30 days of the peak monsoon period to debottleneck the plants, and currently, several of the units are going through this process, the official said.

 

On other hand, cement prices across most parts of the country are likely to remain unchanged till October as intense competition among companies and focus on volume growth continue to keep prices under pressure, multiple dealers said.

 

While demand remained stable in several markets, cement companies were yet to push through price increases despite healthy offtake in some regions. Dealers and industry officials expect prices to rise by around INR 10-INR 15 around end-October, as construction activity is likely to pick up further after the monsoon.

 

Cement supplies were lower in parts of South India, including Andhra Pradesh and Telangana, as some plants undertook planned maintenance and temporary or partial shutdowns. Dealers in Andhra Pradesh and Telangana reported supply shortages since Thursday.

 

A senior official of a major cement company operating from Hyderabad said annual maintenance at cement plants was usually undertaken during the monsoon or ahead of Dussehra and Diwali, leading to temporary production disruptions. Unlike the usual supply controls around month-end or before price resets, the current shortage in some southern markets were mainly due to plant shutdowns, the official said.

 

The official said cement demand remained healthy across southern markets during July and August and was likely to stay firm till Diwali. Prices could rise by INR 10-INR 15 a bag after Diwali as construction activity was expected to accelerate after the monsoon, he said. In Andhra Pradesh and Telangana, cement prices were in the range of INR 275 to INR 320 per 50-kilogram bag, depending on the brand and the location.

 

In Tamil Nadu, some cement companies attempted to raise prices by INR 20 per 50-kg bag, but dealers faced difficulty in passing on the increase to customers due to intense competition. A Chennai-based top dealer handling multiple brands said companies were focused on increasing volumes, making a price hike difficult to implement. Cement prices in Tamil Nadu were currently in the range of INR 295-INR 320 per bag. UltraTech, Ramco Cement, India Cements, Dalmia Bharat, JSW Cement and Sagar Cements are some of the key brands in the South India market.

 

Cement prices in Punjab remained stable, with dealers in Patiala quoting retail prices of around INR 340 a bag. Two dealers said demand was stable and expected to improve after the monsoon, while there were currently no supply constraints. UltraTech, Shree Cement, JK Cement, Ambuja Cement, and Jaypee Cement are some of the top selling brands in Delhi-NCR and Punjab regions.

 

A dealer of JK Cement said prices could increase by around INR 10-INR 15 a bag over the next one month, around October-end. In New Delhi, cement prices were in the range of INR 330-INR 350 a bag and were unlikely to increase in the near term, according to a dealer. Demand and supply remained normal and were expected to stay so, the dealer said.

 

CURBS ON PROJECTS

Cement prices in major parts of eastern India remained flat on month, with Portland Pozzolana cement priced at INR 355-INR 380 a bag, depending on the region. Ordinary Portland cement was priced at INR 370-INR 420 a bag, depending on the state. Prices of Ordinary Portland cement increased by INR 5 a bag in Bihar in August from July, while prices in West Bengal and major parts of Odisha rose by around INR 3 a bag, dealers said.

 

Demand in West Bengal remained muted as monsoon rains disrupted construction activity, according to a senior official of a Kolkata-based cement company. Demand from individual home buyers declined, while a halt in construction activity in the state also affected demand from organised real estate developers, the official said.

 

Following the collapse of a warehouse in Kolkata in June, the West Bengal government had placed nearly 600 real estate projects involving buildings of more than four floors under mandatory scrutiny. Developers halted construction at the projects pending clearances. The government subsequently cleared 192 projects in Kolkata and its surrounding areas, while notices were issued to 27 projects.

 

Dealers in Kolkata said the monsoon had affected sales to individual buyers, while the mandatory scrutiny had weakened demand from organised real estate developers.

 

Dealers expect cement prices in September to remain unchanged or rise marginally by less than INR 5 a bag, citing intense competition among manufacturers in both Ordinary Portland and Portland Pozzolana cement.

 

UltraTech, ACC, Dalima Bharat, and Nuvoco Vistas are the top selling cement brands in East India markets.

 

In Maharashtra, particularly Mumbai, cement sales have remained muted for the past two months, with demand significantly lower, multiple dealers said. Dealers do not expect any price hike in the coming months, citing weak demand conditions.

 

At 1115 IST, shares of UltraTech traded at INR 11,553, down 1.4, on the National Stock Exchange. Shares of India Cements were down 1.2% at INR 364.45, those of Dalmia Bharat were down 1.9% at INR 1840, Shree Cements down 1.4% at INR 24,110, NCL Industries down 1.2% at INR 176.38 and of Sagar Cements traded 0.4% lower at 163.43. ACC shares traded flat at INR 1,310.70.  End

 

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

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

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