Concrete

Cement Prices Set To Stay Under Pressure In July

Monsoon and weak demand keep prices under strain

Published

1 week ago

July 6, 2026

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A report by Centrum said cement prices are expected to remain largely flat in July as the monsoon and weak demand weigh on the sector. The report said demand during the first quarter of FY27 remained range-bound and below expectations, with dealers across markets pointing to subdued construction activity, labour shortages, elections, heatwaves and slower execution of government projects as key reasons. It noted that some recovery was witnessed in June due to delayed onset of the monsoon and quarter-end volume push.\n\nDealers across most markets do not expect any meaningful price increases in July, the report said, adding that attempts to raise prices in some markets are aimed at defending existing levels rather than achieving significant gains. The sharp correction following the rollback of April hikes has largely played out across most regions, limiting scope for further immediate increases. Seasonal slowdown in construction activity during the monsoon is expected to continue affecting demand and pricing in the coming months.\n\nCentrum indicated that pricing pressure is likely to persist through the second quarter of FY27 as monsoon-related softness continues. Dealers remain cautious about sustainability of any price rise attempts and do not rule out further weakness during the peak monsoon period. The combination of subdued demand and seasonal factors is likely to constrain the industry’s ability to raise prices in the near term. While June saw some improvement in volumes because of delayed rains and quarter-end sales efforts, the broader demand environment remains challenging.\n\nCement companies are therefore expected to focus on maintaining current price levels rather than pursuing aggressive increases as the sector navigates weak demand and seasonal headwinds. The report suggested that unless demand conditions improve significantly, limited scope will exist for meaningful price recovery. Market participants remain watchful for any shifts in execution of infrastructure projects or construction activity that could alter the outlook.

Related Topics:Cement prices construction activity monsoon demand

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Concrete

Nuvoco Inaugurates Limla Cement Plant in Surat

Acquisition boosts Western India cement capacity

Published

4 minutes ago

July 15, 2026

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Nuvoco Vistas Corporation Limited inaugurated the Limla Cement Plant in Surat, Gujarat, marking a key milestone in its acquisition and revival of Vadraj Cement Limited.

The company completed the acquisition of Vadraj, which had been undergoing a corporate insolvency resolution process, by discharging a consideration of Rs 18 billion (bn) in June 2025. Vadraj’s asset base includes a clinker unit at Kutch and a grinding unit at Limla, along with high quality captive limestone reserves and a captive jetty at Kutch that enhance logistics efficiency.

Since taking over the assets, Nuvoco has undertaken revival, refurbishment and expansion across both sites, culminating in the opening of the Limla facility. The grinding unit at Limla achieved project completion ahead of schedule with the commissioning of two million tonnes per annum (mn t per annum) grinding capacity, further expanding the company’s scale and market reach.

Upon full operationalisation of the Vadraj assets, nearly 40 per cent of Nuvoco’s total cement capacity will be accounted for by plants in the North and West regions, supporting improved access to high growth markets. The plant is expected to support a phased volume ramp up in Gujarat and to serve adjoining markets in western Maharashtra while releasing northern capacities for other markets.

It will produce a complete portfolio of cement products including Ordinary Portland Cement, Portland Slag Cement, Portland Pozzolana Cement and Portland Composite Cement, and will offer the Duraguard range including the premium Duraguard Microfibre. The transaction is set to create synergies with Nuvoco’s existing manufacturing facilities at Nimbol and Chittorgarh, strengthening logistics optimisation and market access across key regions.

Nuvoco reported total income of Rs 113.62 billion (bn) in FY 2025-26 and stated it is on track to consolidate total cement capacity to 35 million tonnes per annum (mn t per annum) by FY2028. The company operates across cement, ready-mix concrete and modern building materials segments and highlighted a pan-India ready-mix presence alongside contributions to major infrastructure projects. Corporate communications contact details were provided by the company.

Concrete

Nuvoco commissions Surat grinding unit

Nuvoco posts 20 per cent rise in Q1 PAT

Published

1 day ago

July 14, 2026

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Nuvoco Vistas Corp. has announced its financial results for the quarter ended June 30, 2026, reporting growth in volumes, earnings and profitability while advancing its expansion plans in western India.

The company inaugurated a 2-million-tonnes-per-annum (MTPA) grinding unit at its Limla Cement Plant in Surat on July 11, 2026, ahead of schedule. The facility, part of the Vadraj Cement assets, is expected to strengthen Nuvoco’s presence in western India while freeing up capacity at its Rajasthan plants to cater to demand in northern markets.

Progress at the Kutch project remains on track, with phased commissioning scheduled to begin in the third quarter of FY27. The company has also commenced work on a bulk cement terminal at Viramgam, Sachana, Gujarat, featuring a dedicated railway siding. The terminal is expected to become operational by the second quarter of FY28 and will support distribution across Gujarat. These projects form part of Nuvoco’s capacity expansion programme, which is expected to increase its total cement capacity to 35 MTPA by FY28.

During Q1 FY27, the company recorded cement sales volumes of 5.3 million tonnes, up 5 per cent year-on-year. Consolidated total income rose 9 per cent to Rs 31.29 billion, while EBITDA increased 7 per cent to Rs 5.72 billion, marking the company’s highest-ever first-quarter EBITDA. Profit after tax grew 20 per cent year-on-year to Rs 1.60 billion.

Commenting on the results, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp., said the company delivered improved business performance despite macroeconomic and geopolitical challenges. He attributed the results to disciplined execution, cost optimisation and operational efficiencies, while highlighting the early commissioning of the Surat grinding unit as a key milestone in the company’s expansion strategy.

He added that the company remains focused on prudent procurement, supply chain efficiency and cost discipline while monitoring geopolitical developments that could affect industry supply chains and input costs.

Concrete

Cement Sector Faces Sluggish Growth in First Half of FY27

April Price Hikes Unlikely To Offset Margin Decline

Published

2 days ago

July 13, 2026

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Nuvama Institutional Equities has warned that India’s cement industry is expected to record subdued volume growth in the first half of fiscal year 2026-27 before a recovery in the second half. The brokerage assessed that price increases implemented in April 2026 will be insufficient to offset an overall decline in sector profitability. It attributed the outlook to weak demand and fresh capacity additions scheduled during fiscal years 2026-27 and 2027-28 that are likely to keep prices under pressure.

The report noted that demand was sluggish in April and May 2026 owing to global uncertainty, labour shortages, heatwaves, constraints in raw materials and unseasonal rainfall. Producers raised prices across regions in April to mitigate rising petcoke costs and higher packaging expenses, but the increases proved short lived. Nuvama reported that standard petcoke prices rose to USD153/t, around USD41/t higher than in the third quarter of fiscal year 2025-26.

Price correction followed weaker demand, limiting the net increase to about Rs 10-12 per bag by the end of the quarter. Imported petcoke prices have since fallen to USD132/t from a recent peak of USD168/t, although they remained roughly USD20/t higher quarter on quarter. The brokerage expected the higher input cost impact to begin reflecting from late quarter one of FY27 and to continue into early quarter two.

Nuvama also estimated that crude linked increases were likely to raise packaging costs by about Rs 120-150/t and to exert upward pressure on freight. It warned that soft demand combined with significant new supply coming on stream in FY27-28 would keep pricing under strain and constrain near term margin recovery. The report concluded that volume growth was likely to be sluggish in the first half of FY27 before recovering in the second half.