Cement prices likely to rise Rs 10 to 15 per bag from mid-October

Cement manufacturers are expected to raise prices by Rs 10 to 15 per bag from 12 October to offset high input costs, according to a report by Emkay Research. The report says rising fuel costs have been a pain point for the sector, with spot petcoke and imported coal prices trading about 20% and 16% above their second-quarter averages at USD 175 and USD 150 per tonne respectively. Packing costs have also climbed as polypropylene granule rates rebounded above Rs 135 per kilogram.

The report estimates that the industry needs sustained hikes of about Rs 10 per bag, around 3%, to neutralise input cost inflation of Rs 300 to 400 per tonne. Despite steady demand driven by non-trade segments and expected 7 to 8% year-on-year volume growth in the first half of FY27, second-quarter earnings are projected to decline sequentially by Rs 200 to 250 per tonne. The report adds that demand momentum should remain robust over the coming 18 months, supported by the busy construction season and pre-election infrastructure activity ahead of the general elections in the first half of 2029.