India's cement producers are planning a INR7-10 (US$0.08-0.12)/bag price hike in January on the back of sustained demand improvement and the pick-up in construction activities, according to Business Line.
Price increases of INR7-8/bag across important markets in the north, central and eastern regions of India have held. Prices in December ranged from INR365-368/t, up from INR358-360/bag during the previous month.
“December demand is good and we are hoping that it’ll sustain even in January. So there is scope for another Rs. 7–10 per bag price hike next month. Construction activities, work on State-roads, disbursals by State governments are witnessing some uptake,” said a market participant.
They also highlighted expected increases for infrastructure spending in the upcoming Budget, key to sustaining demand further through 2025. Forecasts for FY24-25 indicate a market expansion of around five per cent, according to research house Crisil. While consumption was affected by seasonal weakness and deceleration in construction activity in the first half, the second half of the fiscal year is expected to see rural demand pick up and infrastructure spending increased.
