Cement Prices Rise ₹7 Per Bag in September; Another ₹5–20 Hike Possible in October
Cement prices increased across major Indian markets in September, while companies may attempt another ₹5–20 per bag hike in October as demand and dealer acceptance remain key factors.
- All-India average trade cement prices rose ₹7 per bag to ₹356 in September.
- South India recorded the sharpest regional increase at ₹11 per bag.
- Cement companies may seek another ₹5–20 per bag increase in October.
India: Cement prices across India increased in September, with the average trade price rising by ₹7 per bag to ₹356. The increase comes after prices remained largely unchanged during July and August. The latest trend has also raised the possibility of another ₹5–20 per bag price increase in October, according to a report by Centrum Broking.
The September recovery was visible across both trade and non-trade markets, although the increase was more pronounced in the non-trade segment. Cement prices rose in several regions, but the higher rates charged by manufacturers have not been completely passed on to consumers in some markets. Dealers reportedly continued selling at older prices in certain areas to achieve their quarter-end sales targets.
Centrum Broking said cement companies could make another attempt to raise prices in October. However, the report highlighted that the success of such increases will largely depend on whether construction demand improves and dealers accept the higher prices. The report also pointed to the recent increase in fuel costs as an important factor that could influence companies’ pricing decisions.
The regional impact was uneven. South India recorded the largest increase, with prices rising ₹11 per bag during September, followed by West India with a ₹9 increase. Central, East and North India each recorded an increase of around ₹5 per bag. Weather conditions also affected construction activity, with heavy rainfall slowing work in some markets while relatively lower rainfall supported activity in others.
Despite the September improvement, cement pricing for the entire second quarter of FY27 remained slightly weaker. The average all-India trade price during Q2FY27 stood at around ₹351 per bag, down ₹1 sequentially, as weaker prices during July and August offset September’s gains. Demand remained range-bound across several markets, although activity showed some improvement toward the end of the quarter.
Going forward, October will be an important month for cement manufacturers and consumers. Companies are expected to test the market with further price increases, but whether those hikes remain in place will depend on construction demand, dealer response and cost pressures, particularly fuel prices. A stronger recovery in demand could make it easier for manufacturers to maintain higher prices.
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