Cement prices in India increased by an average of ₹7 per bag in September 2026, with cement companies now considering another ₹5–20 per bag price hike across most markets in October. According to a report by Centrum Broking, the ability to sustain the proposed increase will depend largely on demand recovery and dealer acceptance.
Cement Prices Increase in September
The all-India average trade price of cement rose by ₹7 per bag month-on-month to ₹356 per bag in September. Prices had remained largely stable during July and August before showing an improvement in September. Channel checks by Centrum Broking indicated that prices increased across both trade and non-trade segments, with non-trade prices recording sharper increases in most markets.
South India Records Highest Price Increase
Regional price movements varied during September. South India recorded the highest increase of ₹11 per bag, followed by:
West India: ₹9 per bag
Central India: ₹5 per bag
East India: ₹5 per bag
North India: ₹5 per bag
Despite the September increase, the average all-India trade price for Q2FY27 stood at ₹351 per bag, down ₹1 per bag sequentially, as weaker prices during July and August offset the September recovery.
Cement Companies May Raise Prices Again in October
Cement companies could attempt another ₹5–20 per bag price increase across most markets in October. However, the proposed hike may depend on whether demand improves sufficiently and dealers accept the higher prices. Centrum Broking noted that increased fuel prices in recent weeks could also influence companies' ability to implement and sustain price increases.
Demand Recovery Remains Key Factor
Cement demand remained range-bound across several markets during July and August. September showed mixed regional trends, with rainfall affecting construction activity in some areas while lower rainfall supported activity in others. According to Centrum Broking, demand weakness in Q2FY27 was less pronounced than the usual seasonal trend, while construction activity improved in several markets toward the end of the quarter. However, higher company billing rates have not been completely passed on to customers in some markets. Dealers reportedly continued selling at earlier prices to meet quarter-end volume targets.
Outlook for Cement Prices
The October price increase remains dependent on construction demand, dealer acceptance and market conditions. While companies may seek another ₹5–20 per bag increase, sustaining higher prices will depend on whether demand recovery supports the revised rates.
FAQs
1. How much did cement prices increase in September 2026?
The all-India average trade price increased by ₹7 per bag to ₹356 per bag.
2. How much could cement prices increase in October 2026?
Cement companies could attempt price hikes of ₹5–20 per bag across most markets.
3. Which region recorded the highest cement price increase in September?
South India recorded the highest increase at ₹11 per bag.
4. What will determine the success of October's cement price hike?
Demand recovery and dealer acceptance will be key factors.
5. Why are cement companies considering another price hike?
Higher fuel costs and improving cement pricing momentum are among the factors influencing the proposed increases.
