Prices for cement remain steady amidst the monsoon season, with manufacturing firms considering hikes.
As August 2025 approaches, the cement industry in India is gearing up for the post-monsoon season, a period that traditionally sees an increase in cement prices. However, there are no direct, specific projections regarding the exact price increase per bag in India during this time.
Recent market trends and financial analyses of major cement companies such as India Cements and Shree Cement suggest potential cost pressures and market uncertainties. The share prices of these companies have shown declines or volatility, indicating possible challenges ahead.
Typical factors contributing to cement price increases in India post-monsoon include rising input costs, seasonal demand fluctuations, government policies and taxation changes, market supply constraints, inflationary trends, and currency fluctuations. These factors can cause prices to rise by ₹2-5 per bag, although exact figures for 2025 are not available at this time.
Cement prices remained flat on a month-on-month basis in early August, decreasing by 0.5%. However, price hikes were observed in the South, East, and Central regions, with increases between 2 and 2.5 per cent for Q1. Cement prices have increased by 6% year-on-year (y-o-y) in July, reaching ₹374-375/bag pan India.
Cement makers are considering a ₹10-20 price hike per bag, based on expectations of increased demand post-monsoon and higher pet coke prices. The North and East regions held steady in terms of cement prices, while the West and Southern markets experienced a 1-2 per cent decrease in prices on a month-on-month basis.
Industry demand likely grew in low to mid-single digits in July, despite a favorable base, due to dampened construction activity. However, the medium-term volume growth of cement is expected to be 6-7%, driven by government thrust on infrastructure and housing, and improving demand from both rural and urban markets.
As we move closer to August, monitoring company reports and sector analysis will offer more concrete data on the exact price increase per cement bag. It is advisable to stay updated on industry and government notifications for the most accurate information.
- The banking sector may encounter increased lending to cement businesses due to the anticipated price hikes in the industry during the post-monsoon period in 2025.
- The IT sector could witness growth as more cement companies opt for subscription-based software solutions to manage their operations and forecast demand during market uncertainties.
- The sports industry could potentially benefit from increased marketing opportunities with cement companies looking to sponsor events to promote their products during the period of price increases.
- The infrastructure industry, particularly in India, will continue to play a significant role in driving growth for the cement industry, especially with government focus on housing and infrastructure development.
