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IndiaQ1 2025
In Q1 2025, Cement prices increased in the Chinese market driven by pre-holiday restocking and urban redevelopment initiatives. The new year opened with a modest 1% price increase – the first quarterly rise since 2022. However, a 20% coal price surge due to Russian supply constraints pressured margins even as industry consolidation strengthened pricing power for remaining players. The property sector remained a drag with new home sales down 15% YoY, highlighting the uneven nature of the recovery. This quarter revealed an industry at a crossroads, where policy support and production discipline were beginning to yield results, but where structural challenges in real estate and overcapacity continued to limit upside potential of cement prices.
Q4 2024
Q4 marked an inflection point with Cement prices in China flattening and even showing 0.5% gains in some markets, supported by Beijing’s October 1 trillion-yuan stimulus package targeting infrastructure and flood recovery. Property sector easing measures, including reduced down payments and mortgage rate cuts, stimulated some housing demand, while winter production cuts balanced supply. Major producers transitioned from defensive pricing to margin protection strategies, benefiting from an 8% monthly export increase to Africa and the Middle East that partially offset domestic weakness. The quarter demonstrated how coordinated policy action could begin stabilizing the cement market after prolonged cement price declines.
Q3 2024
The third quarter brought tentative stabilization in Cement prices in China with a slower 1.5% price decline as policymakers initiated measured responses. PBOC’s June rate cuts and special bond issuances improved liquidity, supporting small-scale infrastructure projects, though major initiatives remained delayed. Seasonal improvements in southern cement demand post-monsoon provided modest relief, with inventory levels remaining elevated at 70-75% utilization. While coal price stabilization eased cost pressures, the cement market continued to grapple with structural oversupply and muted construction activity, particularly in the still-struggling property sector.
Q2 2024
Cement Prices in China fell another 3-4% in Q2 as market conditions deteriorated further, with the property sector collapse reaching new lows following Evergrande’s liquidation and Country Garden’s default. Infrastructure growth of just 6% YoY disappointed expectations, while heavy southern rainfall disrupted construction activity. Export markets provided little relief as Southeast Asian competitors increased domestic production. Major producers like CNBM and Anhui Conch engaged in aggressive price competition to maintain market share, even as April’s 10% coal price rebound squeezed margins. The quarter revealed an industry caught between weak domestic demand, rising costs, and intensifying competitive pressures.
Q1 2024
The Chinese cement market experienced a 2.5% price decline in Q1 2024, reflecting typical post-Lunar New Year demand weakness exacerbated by deeper structural challenges. The ongoing property crisis saw property investment fall 9.5% YoY and new construction starts plummet 27%, while delayed infrastructure stimulus projects due to fiscal tightening further constrained demand. With coal prices dropping 15% and industry utilization rates languishing around 65%, producers faced mounting inventory pressures. The market’s weakness was compounded by postponed infrastructure spending commitments following China’s “Two Sessions” meetings, leaving the sector in a typical seasonal slump but with amplified severity due to macroeconomic headwinds.
Q1 2025 –
In the first quarter of 2025, the cement sector in India demonstrated stable pricing, particularly in the Ex-North India region where non trade cement prices stood at USD 4.28/Bag (INR 365/Bag), [i.e., 50 kg Bag] where prices remained largely unchanged due to a well-balanced supply and demand. In contrast, the Ex-west India and Ex-east India regions experienced slight price increases of approximately 1%, driven by a gradual rise in construction activities, especially in urban areas and infrastructure projects. This pricing stability was further influenced by escalating costs linked to logistics and raw materials.
Q4 2024
In Q4 2024, cement prices remained stable in Ex-west India and Ex-east India. Both regions saw little to no change in pricing, as demand remained relatively consistent. However, Ex-North India prices rose slightly by 1%, driven by a slight uptick in demand, especially from infrastructure projects and recovery in certain residential construction segments. The overall demand-supply dynamics in the North contributed to the price increase, while Ex-west India and Ex-east India remained steady due to stable market conditions and moderate demand. Major players like UltraTech and Adani Cement ramped up competition through strategic acquisitions—UltraTech secured a 32.72% stake in India Cements, while Adani acquired Orient Cement This Acquisition adds 16.6 MTPA capacity (8.5 MTPA operational, 8.1 MTPA Ready to Execute). Accelerates Ambuja’s journey to achieve 100+ MTPA operational capacity in FY 25. These acquisitions exerted continued pressure on prices as production capacity grew. Incremental price increases in December 2024, driven by a resurgence in real estate demand.
Q3 2024
The third quarter of 2024 saw a decline in cement prices across all regions, though at a more moderate pace. Ex-North India, Ex-East India, and Ex-West India all experienced a 2% decrease in cement prices. The decline in Ex-North India was driven by ongoing construction delays and fewer new infrastructure projects being launched. Ex-east India faced similar challenges, with the pace of recovery in construction activities being slower than anticipated. Ex-west India, while stable in some parts of the region, still faced pressure from oversupply and lower demand, especially in the wake of seasonal fluctuations.
Q2 2024
In Q2 2024, cement prices declined further across all regions. Ex-North India, Ex-east India, and Ex-west India all experienced a 3% decrease in prices, largely driven by a slowdown in the construction sector. This was compounded by seasonal lulls in demand and lower activity in both public and private infrastructure projects. The regional supply-demand balance was disrupted, contributing to further downward price adjustments in all regions. The oversupply in certain markets and weaker demand led to significant price reductions across the board.
Q1 2024
The cement industry in India saw a slight decline in prices during the first quarter of 2024. Ex-North India prices decreased by about 2%, driven by reduced demand from construction sectors and lower activity in key infrastructure projects. Ex-east India also experienced a 2% decline, with factors such as sluggish demand and overcapacity in certain regional markets contributing to the downward trend. Ex-west India prices saw a more significant drop of 3%, largely due to slower urban construction demand in major metropolitan areas like Mumbai and Pune, coupled with oversupply from local manufacturers.
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2024: Weak Demand and Competitive Pricing Challenges
At the beginning of 2024, the cement industry faced difficulties due to weak demand and intensified competition stemming from significant supply increases by major companies. Although there was a minor rise in prices since November 2024 attributed to seasonal construction patterns, the overall market remained subdued.
2023: Persistent Inflation and Increased Government Infrastructure Spending
In 2023, India grappled with ongoing inflation fuelled by rising costs of raw materials, logistics, and labour. At the same time, the government ramped up infrastructure investments, initiating several large-scale projects and enhancing residential construction. Consequently, cement prices rose by 5-8%, especially in the Ex-West India and Ex-North India regions, driven by sustained demand from these sectors amid elevated production costs.
2022: Energy Price Spike Due to Russia-Ukraine Conflict
The conflict between Russia and Ukraine, which began in February 2022, triggered a significant surge in global energy prices, heavily affecting cement production costs that depend on coal and oil. As a result, cement prices in India increased by 7-12% throughout 2022, with the Ex-West India and Ex-East India regions facing the most substantial price hikes due to logistical difficulties.
2020: The Effects of COVID-19 and Nationwide Lockdown
The COVID-19 pandemic led to a nationwide lockdown in March 2020, which halted construction activities and disrupted the cement supply chain. This situation resulted in an immediate drop in demand, causing cement prices to decrease in the second quarter of 2020. However, as the economy began to reopen later that year, prices started to rebound, even though construction activity remained sluggish, largely due to ongoing supply chain challenges that raised transportation and production costs.
This research methodology ensures that PriceWatch delivers accurate, timely, and actionable Cement pricing assessments, enabling our clients to stay ahead of market trends and make informed decisions in an ever-changing market.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Cement is a finely powdered material that exhibits strong adhesive properties when combined with water and aggregates. It is made from a blend of limestone, clay, and sand, which supply essential components like lime, silica, alumina, and iron. The process of cement manufacturing involves three primary phases: preparing the raw materials, producing clinker, and finally, preparing the cement.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Parameter | Observed Value | ||
| Chemical Requirements | OPC 53 | OPC 43 | PPC |
| Insoluble Residue (% by mass) | 2.12 | 2.87 | 25.48 |
| Magnesia (% by mass) | 3.82 | 1.07 | 1.04 |
| Sulphuric Anhydride (% by mass) | 3.19 | 2.04 | 2.43 |
| Total Loss on Ignition (% by mass) | 2.25 | 3.54 | 1.66 |
| Total Chlorides (% by mass) | 0.002 | 0.025 | 0.009 |
| Physical Requirements | |||
| Fineness (m²/kg) | 334 | 254 | 350 |
| Standard Consistency (%) | 29.8 | 26 | 30.5 |
| Setting Time (minutes): Initial | 130 | 155 | 180 |
| Setting Time (minutes): Final | 195 | 220 | 240 |
| Soundness: Le-Chat Expansion (mm) | 1 | 1.2 | 1 |
| Soundness: Autoclave Expansion (%) | 0.13 | 0.035 | 0.08 |
| Compressive Strength (MPa): | |||
| – At 72 ±1 hr (3 days) | 36.5 | 32.2 | 28 |
| – At 168 ±2 hr (7 days) | 46.5 | 42.5 | 40 |
| – At 672 ±4 hr (28 days) | 62.0 | 52.8 | 51.2 |
| % of Fly Ash addition | N/A | N/A | 28 |
Applications
Cement serves as an essential material utilized in numerous end-use sectors, with residential construction being the primary consumer due to increasing urbanization and housing needs. Its application is widespread in commercial construction, including shopping centres, office buildings, and warehouses, fuelled by the expansion of retail and e-commerce. The infrastructure sector is another significant consumer, as governments allocate substantial funds towards transportation systems, urban development, and public utilities. Furthermore, cement is crucial for industrial and institutional construction, supporting the development of manufacturing plants, educational institutions, and healthcare facilities. It is also employed in the construction of roads, bridges, and various civil engineering projects, underscoring its critical role in economic growth and contemporary infrastructure.
Cement prices are shaped by several important factors. The costs of raw materials such as limestone, clay, and gypsum have a significant effect on production expenses. Energy costs are also critical, as cement production requires a substantial amount of energy; any changes in electricity and fuel prices can result in price adjustments. Transportation expenses, influenced by logistics and fuel costs, further impact the overall market pricing. Moreover, demand driven by construction projects, economic conditions, and government spending on infrastructure can push prices higher. Supply chain factors, including production capacity and any disruptions, also play a role in determining availability and pricing. Lastly, regulatory requirements for environmental compliance and the level of competition among manufacturers contribute to variations in cement prices.
To achieve better cement pricing from suppliers, begin by analysing market trends and competitor pricing to gauge what constitutes a fair rate. Cultivate solid relationships with suppliers by being dependable, which can be shown through regular orders and prompt payments. Consider bulk buying or entering into long-term contracts to obtain discounts, as suppliers typically provide more favourable rates for larger orders. Utilise competitive quotes from other suppliers as a bargaining tool during negotiations. Suggest mutually beneficial arrangements, like adaptable delivery timelines or discounts for early payments, to foster a win-win scenario. Make it a habit to periodically assess contracts and market dynamics to renegotiate prices when necessary.
Cement procurement faces several risks, such as disruptions in the supply chain, quality assurance challenges, changes in regulations, fluctuations in prices, operational breakdowns, and cybersecurity vulnerabilities. To address these risks effectively, it’s important to diversify your supplier base to minimize reliance on a single source, enforce rigorous quality assessments, keep abreast of regulatory updates, and negotiate fixed-price contracts to control expenses. Additionally, routine maintenance of equipment and ongoing staff training can help mitigate operational risks, while investing in cybersecurity strategies to safeguard against digital threats. Proactive planning and continuous monitoring are crucial for maintaining seamless procurement processes.
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