Cement prices in August fell by 3% to Rs 328 per 50 kg

10 Sep 2021 CW Team

Due to the increasing cement prices in the June quarter of 2021, Indian cement industries were unable to sustain themselves in the subsequent months.

The average cement price fell by about 3% to Rs 328 per 50 kg in August 2021, with a 6% price drop in the eastern part of the country, while the remaining region witnessed a 1-3% drop.

Intense competition in the cement industry and monsoon were the main reason for the price hike. In the eastern part of the country, the increased capacity of existing big players, price hike of sand, and weak demand from the state governments led to the downfall of prices in August.

According to an estimate, between the fiscal years (FY) 2022 and FY23, around 44% of the incremental capacity of the Indian cement industry will be in the eastern part of the country. It will lead to rising competition in the region.

As per analysts, the cement demand has been stable in August this year. They estimated a year-on-year (YoY) double-digit volume growth for cement industries in the September quarter.

Looking at the low base of cement demand last year, the all India average cement prices were 5.6% higher than the previous year. As the monsoon season retreats and better cement demand, cement industries may increase cement prices in September and the following months to deal with the rising input costs.

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Also read: Cement prices in India improve, maximum hike in southern India

Also read: Cement prices in May stay firm despite Covid-19 disruptions

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