Business: Cement prices are likely to increase from January 2026 due to increase in demand. This claim has been made in a report by Systematics Research. It is reported that the all India average cement prices have declined by Rs 6 per bag month-on-month in the last month. The main reason for this is the price cut in the southern and eastern regions.

Long monsoon affected construction activities
It said that the prolonged monsoon has affected construction activities. Especially in rural areas and infrastructure projects, which has resulted in weak offtake and limited pricing power of companies.

Big decline seen in eastern market
Compared to all regions, the eastern market saw the biggest decline. Following GST rate cut by Rs 30 per bag in Bihar, prices fell by Rs 10-15 per bag amid slowdown in infrastructure activities due to state elections. In West Bengal too, prices fell by Rs 10-12 per bag in many areas. Prices in Chhattisgarh remained stable at Rs 300 per bag, although labor shortage remained a common problem in the region.

Cement prices in the southern region declined by Rs 5-10 per bag and averaged Rs 325 per bag. Prices remained relatively stable in the northern and western regions, where the average price stood at Rs 365 per bag and Rs 335 per bag, respectively.

Demand expected to remain strong on annual basis
The report revealed that although demand remained weak due to prolonged monsoon, it remained better on a year-on-year basis. Dealers also confirmed that prices are unlikely to rise during the third quarter due to the government’s close monitoring on GST reforms. However, he expects prices to rise again from January 2026 as demand is expected to improve with the resumption of construction activities.