Cost tailwinds lift cement sector

Cement prices continued to fall due to partial rollbacks across regional markets in the country.

In December, average trade price across India moderated by 10 a bag, according to dealers' channel check by Nomura Financial Advisory and Securities (India).

A cement bag weighs 50 kg. The trade segment is where cement is sold by manufacturers to dealers. Region-wise, this price decline was led by the southern and eastern markets, falling by ₹16 and 15 per bag, respectively.

The price correction in the markets was expected by dealers as demand was subdued and companies emphasized achieving volume targets, Nomura said in its report dated 8 December.

Despite the recent softening, trade prices remained strong on a sequential basis, up 13 a bag over the September quarter average (Q2FY24). But pricing pressure indicates that the race to gain market share is getting stiff.