Cement prices to be hiked, as demand improves

01 Apr 2021 Editorial Team

According to market analysts, supported by pent-up demand and a favourable base, the cement industry will likely exit the fiscal year 2021 with better than expected volume growth.

As per ICICI Securities Ltd estimates, the cement industry is likely to post the highest ever quarterly volumes of around 105 million tonne (mt) with 20-22% year-on-year (y-o-y) growth.

However, investors must note that volume growth, particularly in the March quarter, is also backed by the cement industries' push to meet year-end sales targets by reducing prices.

Research firm Macquarie Capital predicts 13% demand growth in FY22, thanks to the government's infrastructure focus, healthy rural demand and a potential recovery in urban housing demand.

With the prospects of increasing demand and ongoing input cost inflation, cement companies are likely to announce another price hike of at least Rs 10 per bag. One cement bag weighs 50 kg.

Access current cement prices here.

The latest dealers channel check by Elara Securities (India) Pvt Ltd shows that after a price hike of Rs 10-16 per bag in the March quarter, cement companies may take another increase in April.

Elara Securities told the media that cement firms attempted price hikes of Rs 5-35 per bag across pockets in early March, and prices over the month have been stable in most markets despite year-end pressure.

As per market intermediaries of Madhya Pradesh, South India, Maharashtra, Delhi, Rajasthan, Bihar, Uttar Pradesh and West Bengal, cement firms may attempt a price hike in the range of Rs 10-30 per bag in April, said Elara Securities in a report on 29 March.

Currently, across the country, the average retail price of a cement bag is Rs 363.

A recent concern for investors in cement stocks has been the increasing cost of input materials such as coke, petroleum, diesel and coal. With a low-cost inventory of raw materials about to exhaust for many cement makers, the street is worried about compression in operating margins.

However, analysts noted that historically, cement companies have passed on the burden of increased costs to consumers to defend margins.

Image Source

Also read: Cement demand to sustain: India Ratings and Research

Also read: Cement shares on a roll

According to market analysts, supported by pent-up demand and a favourable base, the cement industry will likely exit the fiscal year 2021 with better than expected volume growth. As per ICICI Securities Ltd estimates, the cement industry is likely to post the highest ever quarterly volumes of around 105 million tonne (mt) with 20-22% year-on-year (y-o-y) growth. However, investors must note that volume growth, particularly in the March quarter, is also backed by the cement industries' push to meet year-end sales targets by reducing prices. Research firm Macquarie Capital predicts 13% demand growth in FY22, thanks to the government's infrastructure focus, healthy rural demand and a potential recovery in urban housing demand. With the prospects of increasing demand and ongoing input cost inflation, cement companies are likely to announce another price hike of at least Rs 10 per bag. One cement bag weighs 50 kg. Access current cement prices here. The latest dealers channel check by Elara Securities (India) Pvt Ltd shows that after a price hike of Rs 10-16 per bag in the March quarter, cement companies may take another increase in April. Elara Securities told the media that cement firms attempted price hikes of Rs 5-35 per bag across pockets in early March, and prices over the month have been stable in most markets despite year-end pressure. As per market intermediaries of Madhya Pradesh, South India, Maharashtra, Delhi, Rajasthan, Bihar, Uttar Pradesh and West Bengal, cement firms may attempt a price hike in the range of Rs 10-30 per bag in April, said Elara Securities in a report on 29 March. Currently, across the country, the average retail price of a cement bag is Rs 363. A recent concern for investors in cement stocks has been the increasing cost of input materials such as coke, petroleum, diesel and coal. With a low-cost inventory of raw materials about to exhaust for many cement makers, the street is worried about compression in operating margins. However, analysts noted that historically, cement companies have passed on the burden of increased costs to consumers to defend margins. Image Source Also read: Cement demand to sustain: India Ratings and Research Also read: Cement shares on a roll

Infrastructure Urban

07 Nov 2025

Welspun Enterprises Wins 910 MLD Panjrapur WTP Contract

Welspun Enterprises (WEL), the infrastructure and energy arm of Welspun World, has secured a major contract from the Brihanmumbai Municipal Corporation (BMC) to design, build and operate a 910 million litres per day (MLD) Water Treatment Plant (WTP) at Panjrapur, Maharashtra.Valued at approximately Rs 31.45 billion, the project encompasses end-to-end civil, mechanical, electrical and instrumentation works, including the construction of a treated water sump and pumping station. Of the total value, nearly Rs 11.56 billion is allocated to Operations & Maintenance (O&M), with an additional..

Infrastructure Energy

07 Nov 2025

Mitsubishi Power Wins Boiler Upgrade Contract for O Mon 1 Plant

Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, (MHI), has been awarded a contract to support the oil-to-natural-gas fuel conversion at the O Mon 1 Thermal Power Plant in Can Tho, southern Vietnam. As the OEM of the plant’s existing boiler, Mitsubishi Power will supply key equipment—including new gas burners—and implement a selective catalytic reduction (SCR) system to reduce NOx emissions and help the plant meet stricter environmental standards.The O Mon 1 facility includes two 330 MW units that commenced operations in 2009 and 2015, with all major equipment or..

Equipment

07 Nov 2025

Liebherr’s 10,000th XPower Wheel Loader Joins BERGER’s Fleet

BERGER Rohstoffe GmbH has welcomed the 10,000th Liebherr XPower wheel loader to its operations at the Schlag granite quarry in Passau. The milestone machine, officially handed over at Liebherr’s Bischofshofen plant in May 2025, underscores the long-standing partnership between BERGER, Liebherr, and the Beutlhauser Group. Equipped with Liebherr’s signature power-split travel drive, the new L 580 XPower is already delivering strong results under demanding quarry conditions.At the Schlag quarry, BERGER Rohstoffe processes approximately 200,000 tonnes of Bayerwald granite annually into high-qu..