- Weak monsoon demand and cautious buying limited price hike success
- Rising fuel costs may prompt manufacturers to announce fresh hikes in August
Indian trade-level cement prices remained largely stable during July 2026 as weak demand offset rising production costs. Although the monsoon arrived later and rainfall remained below normal in some regions, construction activity slowed and dealer procurement stayed cautious, limiting cement consumption.
Cement manufacturers attempted to increase prices during the second half of July, but the hikes could not be sustained because of subdued demand and intense competition across major markets.
Price hikes fail to gain acceptance
Cement manufacturers announced price increases across several regions during July to offset rising fuel and logistics costs. However, the hikes saw limited acceptance in the trade market as buyers continued to procure only against immediate requirements. Monsoon-related disruptions, slower project execution and adequate material availability kept market activity subdued.
As a result, the price increases mainly prevented further declines rather than establishing higher market prices. While several markets remained stable, dealers in some regions reported price corrections of INR 5-10/bag to improve sales.
Regional price movements in trade segment in Jul’26
West: Trade cement prices remained stable across western markets during July. However, continuous rainfall delayed dispatches and disrupted deliveries, resulting in temporary material shortages in Ahmedabad despite confirmed orders. In Mumbai, heavy rainfall restricted vehicle movement and slowed cement dispatches.
“Heavy rainfall affected logistics and delayed deliveries, while market activity remained subdued due to slower construction work,” a Mumbai-based dealer said.
East: Eastern India witnessed slight price corrections during July as construction activity slowed due to continuous rainfall. Cement movement declined across Kolkata and nearby markets, while comfortable clinker availability and adequate inventories created a supply-demand imbalance.
Most dealers maintained wholesale prices, although some reduced offers by INR 5-10/bag to stimulate buying.
“Demand remained weak throughout the month, and higher material availability limited any scope for price improvement,” an eastern India dealer said.
South: Southern markets recorded mixed price movements. Manufacturers announced price hikes of INR 5-10/bag during mid-July, but acceptance varied across markets. Prices declined by INR 5-10/bag in Hyderabad as weak buying and monsoon disruptions weighed on demand, while Bengaluru and Chennai largely maintained higher price levels following better dealer acceptance and relatively stable construction activity.
Central: Trade prices remained largely stable in central India, particularly in Raipur, where ample material availability and cautious procurement balanced the market.
“Supply remained comfortable, while buyers continued to purchase only against immediate project requirements,” a Raipur-based trader said.
North: Northern markets remained largely stable during July. Seasonal rainfall slowed construction activity in some areas, but ongoing infrastructure projects supported cement demand and prevented any major price correction.
Non-trade procurement remains subdued
Procurement prices for Ordinary Portland Cement (OPC) in the non-trade segment remained broadly stable during July, although some infrastructure buyers reported price reductions of INR 5-10/bag amid weaker demand.
Procurement heads highlighted that cement requirements declined by nearly 30% compared with June as monsoon-related disruptions slowed project execution. Most large infrastructure companies continued to procure cement under quarterly contracts, while purchases were largely limited to ongoing projects.
“Project execution has slowed because of the monsoon, leading to lower cement consumption, but procurement continues for ongoing infrastructure projects,” an EPC procurement executive said.
Higher input costs continue to pressure producers
Production costs increased further during July, limiting margin improvement for cement manufacturers. Brent crude oil prices rose 25% m-o-m to $90/bbl, increasing freight and logistics costs. US-origin pet coke prices increased 5% to $139/t CNF Kandla, while domestic non-coking coal prices climbed 14% to INR 4,600/t Ex-Bilaspur.
Despite higher fuel costs, manufacturers were unable to pass on the full increase because weak demand, adequate supplies and cautious dealer buying continued to limit pricing power.
Outlook
Trade-level cement prices are expected to remain largely stable during August 2026. Cement manufacturers may announce fresh price hikes to offset higher fuel and logistics costs, but their success will depend on improvement in construction activity and dealer acceptance after the monsoon. Until demand strengthens, competition among manufacturers and comfortable material availability are expected to keep prices largely range-bound across most markets.
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