Cement Sector Rebound: Prices and Demand Surge

Nuvama Research forecasts rising cement prices and volumes due to increased demand and a favorable base. Prices surged, led by the southern region, with growth supported by capital expenditure from various government entities. Despite short-term challenges, a positive long-term sector outlook is expected.

A recent report from Nuvama Research predicts a rise in cement prices and volumes driven by an uptick in demand and a favorable base. The report indicates a positive outlook for the sector, with both prices and volumes on the rise.

The cement market is expected to benefit from a low base effect in FY25. April 2025 saw a price increase across all regions, with the southern region witnessing the most significant surge, followed by the eastern, central, northern, and western areas.

Despite improved demand contributing to the price hikes, some dealers anticipate a partial rollback later this month. The demand spike is attributed to capital expenditure by central, state governments, and Central Public Sector Enterprises (CPSEs). The cement sector is poised for volume growth, although this may slow due to the general elections and construction activity downturns.

(With inputs from agencies.)