The cost of goods necessary for housing construction continues to rise, making home building more expensive for ordinary citizens. During the current month, cement producers increased prices, with the report stating that the price of cement rose by 7 rupees per bag.
Furthermore, the report claims that cement prices could increase even more in October, with a forecast of a price increase of 5–20 rupees per bag. However, according to the Centrum Broking report, the continuation of this growth will depend on demand recovery and the willingness of dealers to accept higher prices.
The increase in cement prices is expected until the implementation of restrictions set by the Delhi government, which will begin on November 1, 2026, and last until January 31, 2027 (92 days). These restrictions apply to demolition work and external civil construction. This year, starting December 10, the restrictions will become stricter, including a complete ban on construction until January 20 (42 days), coinciding with the period of maximum air pollution in winter. These bans may lead to a temporary halt in construction activities and projects in the Delhi-NCR region.
It is interesting to observe how cement companies will be able to realize further price increases before the construction restrictions in Delhi-NCR come into effect, especially considering that a three-month construction break will lead to a decrease in demand for cement in Delhi-NCR. Nevertheless, Centrum noted that due to the significant increase in fuel costs in recent weeks, cement companies may need to maintain high profits and implement price hikes. At the same time, the price increase will still depend on demand.
After a period of stagnation in cement prices over the last two months, an increase was observed in September. In July and August, prices remained virtually unchanged, after which the monthly average trading figure rose by 7 rupees per bag in September, reaching 356 rupees. A channel check conducted by Centrum showed price increases in both the trading and non-trading sectors, with the largest increase recorded in the non-trading sector in most markets. However, the brokerage firm indicated that not all the increase factored into the companies' purchase prices reached the end consumers in some places, as dealers continued to sell the product at previous prices to meet quarterly sales targets.
Centrum reported that in the second quarter of the 2027 fiscal year, demand for cement was below average. By the end of the quarter, activity accelerated in many markets, giving companies the opportunity to raise prices in October. However, the brokerage firm warned that the ability to sustain these high prices would ultimately depend on the pace of demand improvement. While demand remained limited in several markets in July and August, mixed regional trends were observed in September. The largest price increase in September was recorded in South India, where the average price rose by 11 rupees per bag. In West India, the increase was 9 rupees per bag, while in Central, East, and North India, the increase was 5 rupees per bag.