Cement Monthly Update January 2026 stock analysis

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Early signs of price stability amid gradual demand recovery

We interacted with cement dealers across regions to assess pricing trends and the overall demand environment nationwide. In January 2026, the cement industry saw an upward trend, with increases in both trade and non-trade prices. On a pan-India basis, average trade prices rose by Rs. 11/bag to Rs. 330/bag. Overall demand remained moderate, supported by improved construction activity, higher infrastructure spending, favorable weather conditions, and better rural offtake. Dealers expect a meaningful improvement in prices over the coming months, driven by strengthening demand across most regions. Indian chemical prices showed mixed trends in January 2026. Aromatics like aniline and benzene posted modest gains on steady dyes/rubber demand, while bulk solvents methanol and phenol corrected amid softer downstream pull. Ethanol and ethyl acetate remained within range, while refrigerant prices remained moderate, and Soda Ash prices were flat due to China’s destocking.

Key regional takeaways:

North: North India experienced muted demand in January 2026, with most markets remaining subdued due to construction bans, labor shortages, and the wedding season across the region. In Delhi, demand was further impacted by intermittent rainfall during the month. As a result, cement prices increased only marginally. Dealers expect demand to recover in February as construction activity gradually picks up pace. Average prices in the North increased by 0.6% MoM to Rs. 337/bag in January 2026.

East: Cement demand in East India remained moderate throughout January. Dealers expect a stronger recovery in February as construction activity gains momentum. Prices in the region improved during the month, as manufacturers implemented hikes to capitalize on seasonal demand and rising cost pressures. Average prices in the East increased by 5.5% MoM to Rs. 290/bag in January 2026.

South: South India witnessed subdued demand in January, which led to only a marginal increase in cement prices. The slight uptick was supported by improving weather conditions and the gradual resumption of construction activity. However, in certain pockets, demand remained weak due to the limited availability of key construction raw materials. Dealers expect a pickup in demand from February as construction activity gathers pace. Average prices in the South increased by 1.6% MoM to Rs. 325/bag in January 2026.

West: Cement demand in the Western region improved significantly as construction activity gained momentum, particularly in Maharashtra. In contrast, other regions experienced moderate demand. Prices also improved during the month, supported by the uptick in demand and supply constraints imposed by leading players in the region. Dealers expect both prices and demand to improve further in February, driven by sustained growth in infrastructure activity and spending. Average prices in the West improved by 5.9% MoM to Rs. 360/bag in January 2026.

Central: Cement demand in Central India improved slightly, supporting a modest price increase. Construction activity picked up as winter conditions eased and laborers returned to work. Prices are expected to rise further in February as construction activity resumes at full pace. Average prices in Central India increased by 4.6% MoM to Rs. 340/bag in January 2026.

Outlook:

The Indian cement sector saw a rise in demand in January 2026, with prices rising across most regions amid stronger construction activity and easing seasonal pressures. After a prolonged period of volatility, the industry is showing early signs of pricing stability. Dealers across markets highlighted that both trade and non-trade segments saw better pricing, reflecting improved execution at the ground level. However, challenges such as construction bans in the North and weak pockets in the South capped the gains. Cement companies across India have been actively pushing for price hikes at the start of the calendar year. While demand remained moderate in certain areas, the overall trend indicates steady consumption, particularly in regions witnessing infrastructure-led growth. Demand momentum is expected to be driven by both institutional and retail segments, including housing and rural construction, which have shown gradual improvement. From a supply perspective, the industry continues to add capacity and focus on maintaining pricing stability rather than chasing volume, which supports realizations. Most companies appear to be prioritizing pricing discipline over aggressive market share expansion. Additionally, macro cost pressures such as fluctuations in pet coke and coal prices, along with regulatory changes like the implementation of new labor codes, may provide room for manufacturers to pass on higher costs, thereby increasing price levels. Looking ahead, demand is expected to strengthen further, aided by continued infrastructure spending and supportive measures announced in the Union Budget 2026-27. As project implementation gathers pace, cement consumption could accelerate, improving both capacity utilization and realizations. Dealer interactions suggest cautious optimism, with expectations of further price improvement in the coming months. Risks remain from regional imbalances or input volatility, but the sector looks poised for 6-7% growth in FY27. Overall, the sector is entering a more stable phase, with balanced demand and supply dynamics likely to support medium-term pricing and profitability. Overall, we remain positive on the industry, with players such as Ultratech, Ambuja Cements and JK Cement well-positioned to benefit from continued infrastructure spending.