Cement sector demand to improve as government spending increases, price hikes likely in April: Report

New Delhi [India], April 8 : The demand is expected to rise in the cement sector as the government spending ramps up, and it could pave the way for price hikes across regions in April 2025, said a report by Nuvama.
The financial services company further added in the report that, following a dip in prices in March after three months of improvement, the outlook for the coming months appears more optimistic.
"All in all, prices slid in Mar-25 (after improving over the past three consecutive months) on account of the year-end volume push. Going ahead, demand is likely to improve as government spending increases. As per current trends, price hikes are likely to be implemented across regions on Apr-25," the report added.
While prices are still down 6.5-7 percent year-on-year, the strategic cost efficiency measures implemented by industry players are anticipated to help mitigate the impact of lower realizations.
The report added that the sustainability of the upcoming price hikes will be uncertain because of the evolving market dynamics.
The Eastern region reported a fall in prices to the tune of Rs 5-7 per bag on Mar-25 after reporting price hikes in Jan/Feb-25.
The report says that the positive signs have emerged on the demand side, which picked up from mid-March 25. According to the report, dealers expect a partial reversal of prices by the end of the month, despite expectations of price hikes of Rs 20 per bag (Rs 10 per bag in two tranches) in April.
In the southern region, the price hikes of Rs 30/bag in the trade segment are likely, as per the report. Demand has been steady, and an uptick from the projects announced by the new Andhra government shall be visible FY26 onward, the report added.
In the northern region, demand improved both MoM and YoY in Mar-25, backed by stable pricing.
A hike of Rs 5-10/bag is anticipated during the month, but dealers do not expect this additional price hike to be sustained, the report added.
Demand remained subdued in March 2025 in the Central region; as a result, prices were slashed to the tune of Rs 3-5/bag.
A price hike announcement to the tune of Rs 10/bag is likely in the central region, the report said, adding that dealers do not anticipate it to sustain.
Demand is likely to improve from the end of April 2025, and eventually pricing shall follow the demand uptick, Nuvama said.
The western region logged a rollback of prices to the tune of Rs 2-3/bag (reversal of hikes taken at the start of Mar-25) on account of volume push. In the region no price hike announcements have been made yet as of April of current year.