Cement Prices Rise in Southern India, Despite YoY Decline

In recent weeks, prices for cement in Southern India have witnessed an increase of ₹30-40 per 50 kg bag. The hike comes despite the 14.2% year-on-year (YoY) decline in RG cement prices, the latest averaging at ₹326 from November’s ₹380.

As per a leading cement distributor in Chennai, dealers in the region have been adjusting the prices of various brands owing to dynamic changes in the market. PPC cement rose 15 days from around ₹360 to ₹380; this is, however, one of the most popular cement and had a growing demand. Besides, OPC’s price rose from ₹340 to ₹355, registering a jump over the last one-and-a-half months.

Despite the rise in prices for individual brands, the Southern region continues to maintain some of the lowest cement prices in India, driven by the typically lower price structure of the market. This price hike is primarily attributed to increasing construction activity and demand across the region.

According to industry experts, there was a price adjustment, resulting from rising input costs, supply chain pressures, and growing demand from both residential and commercial construction. These factors contributed to market fluctuations, with dealers and manufacturers responding accordingly.

The overall decline in average prices compared to last year may indicate a longer-term trend towards more affordable cement in the region. However, the short-term price increase for PPC and OPC suggests that demand may continue to drive prices higher in the near future, making it essential for builders and contractors to stay updated on market movements.