Cement cos regain pricing power as demand improves from infra, construction

According to a recent report by CRISIL, cement volume growth in FY23 is likely to be in the region of 8-10 per cent - the highest since 2018-19

An end to the seasonally weak quarter of July-September has brought good news for cement companies. For one, demand for cement is growing from sectors such as infrastructure and construction. This is therefore, improving utilisation levels at plants.

Two, while cost pressures are receding, there is still some concern they could inch up with crude and currency volatility being high.

Price hikes of around 6-8 per cent, observe companies, are likely between now and December in phases to protect margins and improve realisations.

“Demand has grown from sectors such as infrastructure and construction as the monsoon season has ended,” says Hari Mohan Bangur,