Cement Price Hikes and Labor Shortages Prevail, Affecting Demand For Construction Material

New Delhi: Labour shortage due to heatwaves in some regions coupled with the latest hike in cement prices have affected demand for the key construction material, according to Prabhudas Lilladher.

As a result, all-India average cement price rose by Rs10 per bag month-on-month, reaching Rs361 per bag by April-end.

"Going forward, dealers are anticipating further price hikes of Rs 10- 15 per bag across regions as demand remains steady," the report read.

Prabhudas Lilladher expects demand for cement to remain stable in the near term with a strong urban property market and improving rural housing segment activities.

Among key markets, Chennai and Hyderabad witnessed steep price hikes of Rs 30-40 per bag, which dealers reported led to a decline in sales.

In contrast, Delhi and Patna saw increases of Rs10 per bag. Meanwhile, Western and Central regions recorded flat month-on-month pricing or marginal declines of up to Rs5 per bag.

Based on the discussions with the dealers, the financial advisory firm found that demand remained steady across most of the regions during the month.

"However, prices declined in certain markets due to extreme heatwaves affecting labor availability, which in turn weighed on demand," their report read.

The ongoing marriage and harvesting seasons further added pressure on demand across several regions, it added. rabhudas Lilladher has put out a report after having interacted with cement dealers across regions in India to access the demand and price scenario in April 2025.

"Government-led construction activities are expected to pick up pace before the monsoon sets in. We believe recent price hikes were taken to offset the impact of rising pet coke costs and we may not see further price hikes in May unless demand grows in double digits. Pet coke prices have also seen some softening in recent weeks."

"We remain positive on the sector amid global economic uncertainties and continue to prefer industry leaders due to their superior execution and improving reach across regions," it added.

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