June 2025 Cement Price Outlook: Report Highlights Rs 2 Price Hike Per Bag & Potential Monsoon Impact on Demand

Cement prices in India experienced significant changes in June 2025, with a substantial increase observed in South India, while other regions recorded either slight declines or stable trends. The sharp rise in prices in the southern market contributed to an increase in the overall pan-India average cement price, according to a cement dealer survey conducted by brokerage firm Nomura and reported by CNBC-TV18.

Cement Price Hike 2 Rs Per Bag: Know Details

As of June 2025 beginning days, the pan-India average trade price of cement has increased by Rs 2 per bag, reaching Rs 358 per bag, according to the report. This overall rise is primarily driven by a sharp Rs 19 per bag hike in South India, particularly following price increases implemented in Tamil Nadu and Kerala since mid-May.

In contrast, prices in other regions have shown a moderating trend, with declines of Rs 3 per bag in the Central region, Rs 5 in the Western region, and Rs 2 in parts of the South outside the main areas of the hike.

Dealers across various regions have cautioned that the early onset of the monsoon could dampen cement demand through June 2025. Historically, the monsoon season, which typically begins in June and ends in September, results in a slowdown in construction activity across India due to heavy rainfall, logistical difficulties, and limited site accessibility. This seasonal disruption affects both infrastructure and real estate projects, reducing the pace of work and, in turn, lowering cement consumption. As a result, demand during the monsoon months generally remains subdued, with many construction firms postponing procurement until weather conditions improve.

Cement Price in India Region-wise

Eastern India Cement Rate: Small price adjustments of Rs 3 to Rs 5 per bag has been observed in West Bengal and Bihar. Despite these reductions, cement demand showed an improvement on a month-on-month basis in May. Dealers do not anticipate any further price hikes in June, indicating a likely phase of price stability.

Northern India Cement Rate: Cement trade prices have remained largely flat, with companies introducing token hikes of Rs 2 to Rs 4 per bag primarily to maintain existing price levels. In Rajasthan, cement demand rose by 15% month-on-month in May, reflecting a healthy market trend. Dealers expect prices to remain stable and demand to stay consistent through June, as per brokerage's report.

Western India Cement Rate: In May, the Western region of India witnessed an average price decline of Rs 5 per bag, reflecting a softening in market sentiment according to CNBC-TV18 report. Dealers in the region attribute this decline to subdued demand conditions, which are expected to persist through June. While no further price cuts are currently anticipated, the outlook remains cautious.

Report states that industry participants believe that prices are likely to remain stable in the short term, but the lack of a strong demand recovery may prevent any meaningful upward revision. This sentiment suggests a wait-and-watch approach as market players assess the impact of the monsoon and overall construction activity in the coming weeks.

Southern India Cement Rate: Southern India recorded the most significant month-on-month increase in cement prices, with a sharp hike of Rs 19 per bag. This surge followed price revisions in states like Tamil Nadu and Kerala during mid-May.

However, this pricing strength was not underpinned by a corresponding rise in demand. On the contrary, dealers reported flat to slightly lower volumes in May, raising concerns about the sustainability of the recent price hikes as per CNBC-TV18 report.

How Will the Monsoon Impact Cement Demand? Check Cement Price Outlook

Looking ahead, the outlook for June is uncertain. The early arrival of the monsoon may dampen construction activity, potentially curbing further price momentum. Despite this, early indicators suggest that average trade prices are higher on a quarter-on-quarter basis across all regions except Central India.

This trend aligns with observations by brokerage firm Nomura, which notes that price discipline remains intact across most markets. Still, the overriding concern among dealers is that monsoon-related demand weakness could shape pricing dynamics in the near term.

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