Cement Prices to Hold Steady Amid Monsoon Slump

Cement prices are expected to remain stable in July due to weak demand during the monsoon season, according to Centrum's report. Despite a volume increase in June, dealers anticipate continued pricing pressure and limited scope for significant hikes as construction slows due to monsoon challenges.

According to a recent report by Centrum, cement prices are projected to remain largely unchanged in July, as the monsoon season and persistently weak demand continue to impact the sector. The first quarter of FY27 showed range-bound and below-expectation demand, with construction activity subdued due to factors like labour shortages and slower execution of government projects.

Though there was some recovery in June owing to delayed monsoons and end-of-quarter sales efforts, dealers are skeptical about any significant price increases in July. The report emphasized that while some markets might attempt to hike prices, these efforts are viewed as protective measures rather than a push for substantial increases.

Centrum's analysis suggests that the seasonal slowdown during monsoon will prolong demand and pricing challenges. Dealers remain cautious regarding sustainability of price increase attempts, as demand softness related to monsoon is expected to persist through the second quarter of FY27.