India: Cement trade prices remain largely stable in August amid monsoon-led demand slowdown

• East region records sharpest drop among key markets
• Rising fuel costs support price hike attempts

Trade-level Portland Pozzolana Cement (PPC) prices remained largely stable across key Indian markets in August 2026, as persistent rainfall and slower construction activity weighed on fresh lifting. Eastern region markets recorded the sharpest price drop, while prices edged up slightly in a major market in western region.

Regional trade market trends in August
West: Prices remained stable in month beginning despite a leading manufacturer’s attempt to raise PPC prices by INR 15/bag. Meanwhile, some dealers raised offers this week & average prices rose by INR 2/bag w-o-w. Slow lifting and weak market sentiment prevented the proposed increase from gaining acceptance. Heavy rainfall also disrupted logistics and temporarily tightened material availability earlier in the month, although weak demand limited any price support.

East: Eastern markets recorded the sharpest drop, with average trade prices declining by around INR 17/bag this month. Continuous rainfall, particularly in Kolkata, disrupted construction activity and weakened fresh lifting. Dealers lowered offers to stimulate sales and move available material.

South: Manufacturers attempted price hikes of INR 15-20/bag in Hyderabad at the beginning of August, but the increase was not reflected in trade market offers. Some dealers subsequently reduced prices to support sales, resulting in an average decline of around INR 3/bag in early August before prices stabilised.

In Chennai, trade prices remained largely stable, supported by moderate construction activity, better offtake and steady material acceptance.

Central: In Raipur market, prices remained largely range-bound amid ample material availability and cautious procurement. While some dealers reduced wholesale prices by around INR 5/bag, average trade prices edged down by INR 1/bag during August.

North: Prices remained largely stable despite seasonal rainfall affecting construction activity in some areas. Ongoing infrastructure projects provided sufficient demand support to prevent major corrections.

Non-trade procurement remains subdued
Procurement prices for Ordinary Portland Cement (OPC) in the non-trade segment remained broadly stable during August, although some infrastructure buyers are anticipating further price corrections by month-end before placing fresh orders.

Most large infrastructure companies continued to procure primarily against requirements for ongoing projects, limiting fresh buying activity and keeping overall demand subdued.

Project orders bagged by Infra & Construction Companies in August:

• KPIL (Kalpataru Projects International): INR 3,526 crore – New orders across its infrastructure businesses.
• Ceigall India: INR 2,424 crore – Frontier Highway EPC orders in Arunachal Pradesh, strengthening its Northeast road infrastructure presence.
• L&T: INR 1,234 crore – NMRC Aqua Line Extension contract covering an elevated viaduct and 10 stations in Noida. The company also secured multiple major/ultra-mega offshore orders from ONGC and ADNOC.
• Afcons Infrastructure: INR 1,918 crore – Mumbai water tunnel contract, a major urban water infrastructure order.
• J. Kumar Infraprojects: INR 990 crore – EPC contract from Karnataka Housing Board for an international cricket stadium and allied development works.
• SEPC: INR 854.57 crore – SAIL-ISP expansion project, adding a significant industrial EPC order to its backlog.
• NBCC: INR 801.20 crore – Work orders from RBI and OSEPA for office, residential and hostel construction projects.
• Krystal Integrated Services: INR 740 crore – Maharashtra government work orders to be executed over two years across infrastructure projects.
• HCC: INR 524 crore – NHPC contract in Jammu & Kashmir, adding to its hydro/infrastructure order book.
• Bajel Projects: Multiple large PGCIL orders – Includes 765kV and 400kV transmission-line projects, making power transmission one of the strongest order-win themes in the list.

Outlook
Trade-level cement prices may remain under pressure in the coming weeks as monsoon-related disruptions and weak construction activity continue to limit new material lifting. Cautious procurement is likely to persist, with a meaningful demand recovery appearing unlikely until construction activity improves.

Meanwhile, cement manufacturers have indicated potential price hike attempts towards in coming days as rising fuel costs increase pressure on margins. Domestic non-coking coal prices rose to INR 5,200/t in mid-August from INR 4,050/t in mid-July, while imported pet coke prices increased to $147/t in August from $139/t in July 2026. Higher input costs may support fresh price hike attempts across select regions, although the sustainability of these hikes will depend on demand and market acceptance.