Cement prices saw a steep decline in South India in March, at a rate higher than other regions.
Cement manufacturers in South India attribute the sharp drop in prices across the region to temporary factors, primarily the year-end push for higher volumes and related discounting strategies amid intense competition. They anticipate an upward trend in prices during the first quarter of the new fiscal year.
Industry analysts indicate that cement prices displayed mixed trends on a national scale. While the all-India average retail price saw a marginal dip of ₹1 per 50kg bag, settling at ₹366 in March, East India was the only region to witness an increase of ₹9 per bag. South India recorded the steepest decline at ₹7 per bag, followed by reductions of ₹4 per bag in both Central and West India. Prices in North India remained largely stable on a month-on-month basis.
Jharkhand experienced the highest price increase at ₹15 per bag, while Bihar, Chhattisgarh, and West Bengal each saw a ₹10 hike. Odisha maintained price stability. In Central India, East Uttar Pradesh saw a ₹5 increase, whereas West Uttar Pradesh remained unchanged. Madhya Pradesh registered a ₹10 drop. Gujarat, which had seen three consecutive months of price gains, reported a decline of ₹10 per bag in March, while Maharashtra retained price stability for the second consecutive month.
In South India, cement prices declined after holding steady for two months. Tamil Nadu, Andhra Pradesh, and Telangana saw reductions of ₹10 per bag, while Kerala reported a ₹5 decrease. Karnataka, however, remained unchanged, according to analysts at Elara Securities.
Despite this, officials from South India’s cement industry stressed that demand remains favourable, and the price dip in March is largely temporary. They attribute the fall to year-end volume pressures and heightened competition, exacerbated by excess capacity in the region.
“Prices in the region witnessed a sharp drop in October/November but gradually recovered in the following months. The latest decline is primarily driven by the year-end push. We expect prices to rise again in the first quarter of the next fiscal,” said a senior executive from a leading cement manufacturer.
Another top official from a prominent cement firm noted that the average price decline in South India remains in the single digits this month. “Since price variations occur across districts and regions, it is difficult to provide precise figures, but on average, the drop is between 2 per cent and 5 per cent in the South,” the official added.
Industry analysts expect cement firms to announce price hikes in April, with South India likely to see the sharpest hike announcement.