- Weak lifting limits acceptance of announced price hikes
- Rainfall, festive disruptions weigh on regional demand
Trade-level Portland Pozzolana Cement (PPC) prices showed a mixed trend across Indian markets in the assessment week ended 18 September, as weak lifting continued to limit the implementation of price hikes announced at the beginning of the month. Prices increased in parts of the western and southern regions, while eastern and northern markets saw limited acceptance. Central India remained broadly stable.
Recent market assessments also indicate that cement producers are facing difficulty in sustaining price increases amid muted monsoon demand.
Region-wise market trend
Western region sees selective price increases
In Mumbai, PPC trade prices increased by INR 8/bag w-o-w as dealers raised billing offers following price increases announced by mills. Ahmedabad also recorded an INR 10/bag increase in billing prices; however, limited buyer acceptance led to a slight correction in actual market prices during the week.
Demand remains subdued across western markets, restricting dealers’ ability to fully pass on higher replacement costs.
Eastern prices remain under pressure
Eastern markets continued to face downward pressure amid persistent rainfall and limited cement movement. Lower construction activity and weak buying restricted manufacturers’ ability to implement announced price hikes.
Dealers have remained cautious on inventory accumulation, while manufacturers continue to seek higher realisations to offset rising operating costs.
Southern markets record strongest increase
Southern markets recorded the strongest trade-level price increases during September. Hyderabad prices rose by INR 7/bag following a price increase by a leading producer. However, festive-season restrictions on vehicle movement continue to affect cement dispatches and demand.
In Chennai, prices increased at the beginning of September but subsequently declined by INR 4/bag as buyers resisted higher offers, prompting dealers to lower billing prices. Bangalore prices remained largely stable w-o-w after rising by INR 4/bag earlier in the month following mill-level price hikes.
Central market remains stable
Raipur trade prices remained broadly stable w-o-w amid subdued buying and adequate material availability. Higher availability has kept prices under pressure, while manufacturers’ attempts to increase prices have not gained sufficient market acceptance.
Northern market remains stable
In Delhi, trade prices remained broadly stable during the week. The absence of fresh mill-level price increases kept dealer prices largely unchanged, although some dealers reduced offers to liquidate existing inventory.
Project Updates
Project activity remained robust across infrastructure, industrial and power sectors over the past 10 days, with project announcements and orders exceeding INR 15,000 crore.
Road and railway infrastructure remained key contributors, with GPT Infraprojects securing a INR 484 crore railway bridge project, while NHAI advanced an INR 863 crore four-laning project in West Bengal and an INR 8,300 crore Odisha Coastal Highway tender.
HCC emerged L1 for a INR 410 crore elevated road project in Ranchi. In the power and EPC segments, KEC International secured orders worth INR 1,303 crore, while Power Mech Projects and Dilip Buildcon received projects worth INR 970 crore and INR 1,800 crore, respectively. L&T also secured a large offshore order from ONGC.
Meanwhile, activity extended to housing, renewables, mining and urban infrastructure, indicating continued project momentum across multiple regions.
Outlook
Cement trade prices are likely to remain largely stable across major markets, with price hikes depending on a recovery in sales volumes. In the rest of September, prices will depend on the pace of post-monsoon construction activity and dealers’ ability to absorb higher replacement costs. Meanwhile, producers will try to hike prices during the month owing to pressure on margins due to a rise in input costs.
Leave a Reply