No further hike in cement prices expected amid weak demand and monsoon season: Report

New Delhi [India], July 1 (ANI): Cement prices are expected to remain stable in the near term, as no further price hikes are likely in most regions.

According to a report by Incred Equities, dealers believe that any attempt to raise prices may not hold due to poor demand and the onset of a seasonally weak phase.

The report highlighted that while prices were up by around 1.5 per cent compared to March 2025 levels, the scope for further hikes appears limited.

It said, "No further price hike is expected in most pockets and dealers feel any hike will not sustain due to poor demand and the onset of a seasonally weak phase."

It also revealed that the average pan-India cement price dropped by Rs 4-5 per bag month-on-month in June 2025, mainly due to the beginning of a subdued monsoon season for cement demand.

However, prices remained about 5 per cent higher year-on-year, standing at Rs 383 per bag in June 2025. This increase is attributed to the sharp price hikes by cement companies in April 2025.

Despite the recent monthly decline, cement prices have held up compared to the end of the previous quarter (4QFY25). Both the southern and eastern regions performed better during the current quarter, showing relatively stronger pricing trends.

In contrast, prices in other markets remained close to the levels seen at the end of March 2025.

Experts noted that demand from government infrastructure projects is yet to gain momentum in several key states. Additionally, with the arrival of the monsoon season, cement demand has weakened further in many regions. The rainy season typically leads to lower construction activity, putting pressure on demand.

Looking ahead, the density of rainfall in September and October 2025 and the pace of demand recovery after the monsoon will be crucial for determining the direction of cement prices.

Most of the new production capacities planned for FY26 are expected to come on stream in the second half of the financial year, which could further influence the pricing trend depending on how demand evolves.

Overall, the report outlook suggested that cement prices will likely stay steady in the short term, with limited chances of significant increases unless there is a strong revival in demand. (ANI)

(The story has come from a syndicated feed and has not been edited by the Tribune Staff.)