Cement prices continue to climb in early 2025, regional trends mixed: Nomura

Cement prices continued to rise in January 2025, with the average trade price increasing by Rs 2 per bag to Rs 343, up from Rs 341 per bag in December 2024, according to analysts at Nomura. While demand growth remains uncertain, dealers across all regions, except the south, expect further price hikes in January.

"The central region has witnessed a 1 percent drop in prices while prices has risen mildly in all other regions except in the southern region where prices are flat," the brokerage firm pointed out.

In the Eastern region, the average trade price has risen by Rs 5 per bag month-on-month (MoM), reaching Rs 314 per bag, primarily due to a Rs 20 per bag hike in West Bengal. In the Western region, the average price has increased by Rs 3 per bag MoM to Rs 353 per bag, largely driven by a Rs 10 per bag hike in Gujarat, the only region to see significant volume growth in December 2024.

Conversely, the Central region experienced a Rs 3 per bag MoM decrease, bringing the average price to Rs 365 per bag, amid weak demand in the prior month. Dealers expect demand to remain subdued until January 15 due to cold weather, which hampers construction activity.