The Indian cement industry may be poised for a fresh round of price hikes in April 2025, driven by an anticipated rise in demand supported by increased government expenditure, according to a recent report by Nuvama.
The report highlights that cement prices dipped in March 2025 following three consecutive months of gains, primarily due to a year-end push to boost volumes. Despite this short-term decline, the outlook for the coming months remains positive, with expectations of demand picking up pace as infrastructure-related government spending accelerates.
“Prices slid in March after three straight months of improvement, mainly because of the fiscal year-end volume pressure,” the report noted. “However, current trends indicate that price hikes are likely to be introduced across various regions starting April.”
Although average cement prices remain 6.5-7% lower compared to the same period last year, Nuvama suggests that strategic cost-saving measures by manufacturers could help offset the impact of reduced realizations.
The sustainability of these anticipated price hikes, however, remains uncertain due to ongoing fluctuations in market conditions.
Regional Price Movements
- East India: After seeing gains in January and February, the eastern region experienced a price decline of Rs 5-7 per bag in March. Dealers are cautiously optimistic, expecting a partial price rebound by the end of April, with a potential Rs 20 per bag hike, likely to be implemented in two phases of Rs 10 each.
- South India: The report suggests a significant Rs 30 per bag hike in the trade segment is likely in April. Demand in the southern region has remained steady, and a further uptick is expected from FY26 onwards due to new infrastructure projects announced by the Andhra Pradesh government.
- North India: This region showed improvement in both month-on-month and year-on-year demand during March, backed by stable pricing. A moderate price hike of Rs 5-10 per bag is anticipated, although sustainability remains a concern among dealers.
- Central India: Demand stayed weak in March, leading to a price cut of Rs 3-5 per bag. A Rs 10 per bag price increase is expected, but market participants are skeptical about its long-term viability. Demand recovery is anticipated toward the end of April, which may help stabilize prices.
- West India: The region saw a rollback in cement prices by Rs 2-3 per bag in March due to a push in volumes. No official announcements of price hikes have been made yet in April.
Nuvama concluded that while near-term price fluctuations are likely, the overall industry sentiment remains upbeat, supported by government-led infrastructure activity and gradual demand revival.