Indian cement prices forecast to rise

Cement companies in eastern India are expected to raise their cement prices in mid-September, according to the Financial Express. Other regions across the country are forecast to follow suit in early October as the monsoon season comes to an end and construction activity resumes. Cement producers have already increased prices by INR15-20/bag (US$018-0.25/bag), an uptick of 4-4.5 per cent MoM, in eastern and western India in the early part of September, but a further rise of INR15/bag is predicted by the middle of the month.

“Generally for the industry, demand has picked up substantially well after the monsoons in September and with July and August the dispatches are also on the rise. Petcoke prices had fallen in August, however they started to firm up again this month as global crises such as the Ukraine war continue,” says Prashant Bangur, joint managing director at Shree Cement. “The September quarter would be a slow quarter fo the industry, because of the cost pressures that are still lingering. The country had recorded phenomenal rains – except for eastern India – in this quarter, and this time the seasonally strong December quarter is expected to be good.”

According to a report by Jefferies, in the central region, where prices were largely stable, the withdrawal of certain discounts has pushed up prices by INR5-10/bag, but no further price hikes have been announced as yet.