Cement Companies May Attempt ₹5–20 Price Hike in October, Says Centrum Broking

Cement prices could see another round of increases across most Indian markets in October, with companies expected to test a ₹5–20 per bag hike, according to a recent assessment by Centrum Broking.

The proposed increase comes at a time when cement manufacturers are dealing with higher fuel and other operating costs. However, whether the price hikes hold will depend largely on the pace of demand recovery and how readily dealers accept the revised prices.

The latest assessment comes after cement prices moved up across several regions in September. The all-India average trade price increased by ₹7 per bag month-on-month to ₹356 per bag. The rise followed relatively stable prices during July and August.

Among the major regions, South India recorded the sharpest increase during September, with average prices rising by ₹11 per bag. The West recorded a ₹9 increase, while the Central, East and North markets saw increases of around ₹5 per bag.

Centrum Broking noted that cement companies had already raised billing rates in some markets, although the full increase was not necessarily passed on to customers. Dealer-level factors, including quarter-end volume targets, influenced actual market prices in certain regions.

The broader pricing environment also remains linked to demand conditions. Cement demand during the second quarter of the 2026–27 financial year has been relatively weak, although the slowdown was less pronounced than the usual seasonal pattern. Rainfall affected construction activity in some markets during September, contributing to regional variations in demand and pricing.

The proposed October increases therefore come against a mixed backdrop. While higher costs are creating pressure on cement manufacturers to improve realisations, weak demand could make it difficult to sustain price increases across all markets.

The average trade cement price during the second quarter of the 2026–27 financial year stood at around ₹351 per bag, slightly lower sequentially. With September showing a broader improvement in prices, the October pricing moves will provide an indication of how much of the recent cost pressure can be passed through the market.

For builders, contractors, dealers and other cement consumers, the outcome could have a direct bearing on material procurement costs. The extent to which the proposed ₹5–20 per bag increase translates into actual market prices will depend on regional demand, dealer acceptance and manufacturers’ ability to maintain the higher billing levels.