Cement Prices Set to Rise with Demand Surge in 2026

Cement prices in India are anticipated to climb in January 2026 as demand rebounds post-monsoon dip. Recent declines in prices were noted, especially in the east and south, due to slower construction activities. A strong recovery is predicted due to upcoming infrastructure projects and urban housing demands.

Cement prices across India are poised to rise starting January 2026 as demand is expected to ramp up following a recent slump, according to a report by Systematix Research.

Data from the report showed that on a month-on-month basis, the average cement price nationwide dropped by Rs 6 per bag, chiefly driven by cuts in the southern and eastern markets. Prices in the east saw the sharpest declines.

The market correction is attributed to muted infrastructure activities and prolonged monsoon effects, particularly in rural areas.

Bihar witnessed a notable price reduction of Rs 10-15 per bag after a GST rate cut, while ongoing state elections hampered infrastructure development further.

Similarly, West Bengal posted a Rs 10-12 per bag reduction in various regions, while prices in Chhattisgarh held stead at Rs 300 per bag, despite labor shortages.

In the south, a drop of Rs 5-10 per bag led to an average price of Rs 325 per bag, whereas the northern and western regions maintained relatively higher stability with prices at Rs 365 and Rs 335 per bag, respectively.

While dealers do not expect price hikes in the third quarter, they predict a strong rebound at the start of 2026, fueled by infrastructure and urban housing projects. The cement sector, facing a near-term seasonal slowdown, is nonetheless forecasted for a strong recovery, including a potential 7-8% increase in volume as the sector consolidates further.

(With inputs from agencies.)