Indian cement prices on the up

Indian cement prices on the up
11 October 2022

September 2022 saw the all-India average cement price go up by INR6/50kg bag (US$0.07), or 1.7 per cent, compared to the previous month. The highest price increase was seen in the east of the country where prices advanced by 6.6 per cent, followed by a 1.9 per cent rise in the south, 1.3 per cent increase in the west, and a flat-to-marginal decline in north and central India, according to India Infoline News Service. The price rises follow four consecutive months of price cuts.

Further price hikes have been announced for October, with IIFL Securities’ having already seen the all-India average price increase by INR15/bag, or four per cent, so far this month. In October, prices have already risen by as much as 10 per cent in the south, 3-4 per cent in the west and east, and between 1-2 per cent in the central and north regions.

Looking at the quarterly picture, the 2QFY23 has reported a 6.1 per cent QoQ fall in the all-India average cement price, equivalent to around INR20/bag. Prices in the north and central regions are down by 8.5-9 per cent QoQ, have fallen by 5.7 per cent in the east, and contracted by 3-4 per cent in the south and west. The second quarter is seasonally a weak quarter and likely to see a sharp decline in profits on the back of lower prices, higher costs and subdued demand.

The outlook for the third quarter is much more positive due to it being the country’s peak construction period, the introduction of price increases, and a reduction in cost pressures following a 30 per cent fall in the price of domestic petcoke.

Published under Cement News