Cement Price Hike: Big blow for common people. There has been an initial increase in cement prices, and it is anticipated that further hikes may occur in October. Cement companies are considering raising prices by Rs 5-Rs 20 per bag next month, especially after the monsoon season concludes and construction activities resume.
A recent report from Centrum Broking suggests that the duration of these price hikes will be determined by the rise in demand and the willingness of dealers to accept the higher prices. The decision by cement companies to raise prices coincides with the upcoming construction ban imposed by the Delhi government from November 1, 2026, to January 31, 2027, due to heightened pollution levels during the winter season. This ban will result in a pause in construction activities in Delhi-NCR, leading to a decrease in cement demand.
It remains to be seen how cement companies will manage these price increases, as they may need to adjust prices or offer discounts during the restricted period. The price surge in September was attributed to increasing fuel costs, with prices soaring by Rs 7 per bag to Rs 356 on average across the country. The report by Centrum highlighted that both trade and non-trade segments experienced price hikes, with the non-trade sector witnessing the most significant increases in most markets.
According to Centrum Broking, companies may attempt another price increase in October. However, its success will depend on construction activity and cement demand. Demand was limited in many markets in July-August, while activity improved in some areas in September. Rainfall also impacted regional demand. Construction activity was affected in areas with heavy rainfall, while operations improved in areas with less rainfall.
Furthermore, fuel prices have risen sharply in recent weeks. This could increase companies’ costs and create pressure to increase prices. According to the report, whether dealers accepted the increased prices in October and how strong the construction sector’s demand remained will be key factors determining the future direction of cement prices.