Cement Prices Hit Five-Year Low Amid Intense Sector Competition

Cement prices have plunged to their lowest level in five years due to fierce competition, according to a Yes Securities report. Despite past price hike efforts, market demand did not support them. The report forecasts stable prices until demand improves, anticipating a recovery driven by infrastructure and real estate by mid-FY26.

According to a recent report by Yes Securities, cement prices have plummeted to a five-year low as a result of cut-throat competition within the industry. Despite multiple attempts to bolster prices in recent quarters, these efforts were reversed as a weak market environment stymied demand.

The report reveals that the fierce competition has led to significant downward pricing pressures, rendering the sector incapable of maintaining any price increases. Analysts predict that prices will remain stable in the near future until there is an upswing in demand, as the market adapts to current conditions.

The outlook for the sector suggests sluggish demand for FY25, with expectations of flat to negative volume growth year-on-year. However, from mid-FY26, the industry anticipates a demand revival driven by an uptick in infrastructure projects, and a resurgence in both rural and urban housing, potentially balancing the demand-supply dynamics over time.

(With inputs from agencies.)