Demand for cement will rise as government expenditure rises, and price increases are anticipated in April: Report
Rekha Prajapati April 08, 2025 11:27 AM

New Delhi, India: According to a Nuvama research, as government expenditure increases, the cement industry’s demand is anticipated to increase, which may lead to price increases in various locations in April 2025.

The financial services business also said in the research that the prognosis for the next months seems more positive after prices fell in March after three months of growth.

Overall, the year-end volume drive caused prices to decline in March 25 after rising for the previous three months. As government expenditure rises in the future, demand is probably going to become better. Price increases are anticipated to be enacted in all areas on April 25 in accordance with existing trends,” the study said.

The proactive cost-cutting efforts taken by industry participants are expected to lessen the effect of reduced realisations, even if prices are still down 6.5-7 percent year over year.

The research went on to say that the changing market dynamics would make it difficult to determine if the impending price increases will be sustainable.

Following price increases in January and February, the Eastern area reported a decrease in pricing on March 25 of Rs 5-7 per bag.

According to the research, the demand side has shown encouraging indicators from mid-March 25. The article said that even though price increases of Rs 20 per bag (Rs 10 per bag in two tranches) are anticipated in April, merchants anticipate a partial reversal of pricing by the end of the month.

According to the research, price increases of Rs 30 per bag in the trade sector are anticipated in the southern area. According to the research, demand has been consistent and would increase as a result of the initiatives the new Andhra government has proposed starting in FY26.

Supported by consistent pricing, demand in the northern area increased both month over month and year over year in March 25.

According to the study, a price increase of Rs 5–10 per bag is expected to occur over the month, although merchants do not anticipate this further increase to be maintained.

Prices were lowered to Rs 3-5/bag in March 2025 since demand in the Central area remained muted.

According to the source, a price increase announcement of Rs 10 per bag is anticipated to occur in the central area, however merchants do not expect it to last.

According to Nuvama, demand is anticipated to increase starting in late April 2025, and price will gradually follow this trend.

Due to volume pressure, the western area saw a price rollback of Rs 2-3/bag, reversing the rises implemented at the beginning of March 25. As of April of this year, no announcements of price increases have been made in the area.

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