New Delhi: A report from Nuvama indicates that demand in the cement industry is anticipated to increase as government expenditure rises, potentially leading to price increases across various regions in April 2025.
The financial services firm noted that after a decline in prices in March, following three months of growth, the outlook for the upcoming months appears more promising.
"Overall, prices decreased in March 2025 after three consecutive months of improvement, primarily due to the year-end volume surge. Moving forward, demand is expected to strengthen with the rise in government spending. Based on current trends, price increases are likely to be seen across regions in April 2025," the report stated.
Although prices remain down by 6.5-7 percent year-on-year, the strategic cost efficiency measures adopted by industry players are expected to help alleviate the effects of reduced realizations.
The report also highlighted that the sustainability of the anticipated price increases remains uncertain due to changing market conditions.
In the Eastern region, prices fell by Rs 5-7 per bag in March 2025, following price increases in January and February 2025.
Positive indicators have emerged on the demand front, which began to recover from mid-March 2025. Dealers anticipate a partial price recovery by the end of the month, despite expectations of price hikes of Rs 20 per bag (with Rs 10 per bag implemented in two phases) in April.
In the Southern region, the report suggests that price increases of Rs 30 per bag in the trade segment are likely. Demand has remained stable, and an increase in activity from projects announced by the new Andhra government is expected to be noticeable from FY26 onward, according to the report.
In March 2025, the northern region experienced an increase in demand both month-over-month and year-over-year, supported by stable pricing.
A price increase of Rs 5-10 per bag is expected this month; however, dealers believe this rise will not be maintained, according to the report.
In contrast, the Central region saw weak demand in March 2025, leading to a price reduction of Rs 3-5 per bag.
The report indicates that a price increase of Rs 10 per bag is anticipated in the Central region, but dealers do not expect it to last.
Nuvama forecasts that demand will begin to rise towards the end of April 2025, which should subsequently influence pricing.
In the western region, prices have been reduced by Rs 2-3 per bag, reversing the increases implemented at the beginning of March 2025, due to a push in volume. As of April this year, no price hike announcements have been made in this region.
