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Cement Pricing- Cement prices across India saw a notable increase in early December, with an average hike of Rs.10-25 per bag. This translates to a increase of 3.5% on QoQ base, although prices remain 5% lower on a YoY basis. Our channel checks suggest a substantial price hikes are expected in the coming month. To support these increases, cement companies have strategically reduced production and created more favorable pricing environment. The industry is also witnessed improvement in demand. Q4FY25E will be a strong quarter driven by infrastructure push by government bodies and improvement construction activities. The cement sector is expected to rebound in the second half of the year, driven by a combination of higher pricing and strong demand in the upcoming quarters.

• Western Region Pricing- The average cement prices in Western region is down by 10.7% YoY. The current Avg cement price in western region stood at Rs. 334 vs Rs. 374 in Nov-23. Shree Cement is offering non-trade cement in Gujarat at Rs. 325 per bag for PPC and Rs. 340 for OPC. A price increase is expected next month, with PPC will rise to Rs. 345 followed by OPC to reach at Rs. 360 per bag. UltraTech Cement selling PPC Cement at Rs. 374 per bag to retailers and offering Rs. 355 per bag to Dealers. A Rs. 10 per bag price hike is anticipated. Due to lower pricing than its competitors, UltraTech’s sales volume higher in Gujrat, followed by Ambuja and ACC. ACC and Ambuja are currently selling cement at Rs. 370 per bag, with a price hike expected soon. Dalmia Bharat does not have a presence in Gujarat.

• Northern Region Pricing- The average cement prices in Northern region is down by 10.1% YoY. As current Avg cement price in North region stood at Rs. 352 vs Rs. 391 in Nov-23. The prices of Ultratech PPC cement is currently trading at Rs. 365, while OPC is priced at Rs. 390, with no price hikes expected in the near future. Demand is expected to rise between January and March backed by production cuts by cement players and increased constructions activities. Ambuja's PPC price remains at Rs. 350, with a Rs. 15-20 price hike expected. Birla A1 has seen an increase, now priced at Rs. 340 compared to Rs. 320 just 15 days ago. ACC has priced its PPC at Rs. 400, up from Rs. 380, with a Rs. 15 increase expected on January 2025.

• Southern Region Pricing- The average cement prices in Southern region is down by 14.2% YoY and current Avg cement price in South region stands at Rs.326 vs Rs.380 in Nov-23. In southern India, where cement prices are generally the lowest. South dealers have increased the prices of most brands by up to Rs.40 per 50 kg per bag, according to a leading cement distributor in Chennai. UltraTech PPC is now priced at Rs. 380, up from Rs. 360 just 15 days ago. Similarly, Konark cement is currently priced at Rs. 335, while UltraTech cement has risen to Rs. 355 from Rs. 340 over the past 1.5 months.

• Eastern Region Pricing- The average cement prices in Eastern region is down by 15.7% YoY and with current Avg cement price stands at Rs. 294 vs Rs. 348 in Nov-23. Cement prices in the Eastern region remained stable in December, with only minor fluctuations happened in certain areas. This stability reflects manufacturers' efforts to maintain higher price levels based on to improved demand.

• Central Region Pricing- The average cement prices in Central region is down by 7.4% YoY and current Avg cement price stands at Rs. 336 vs Rs. 360 in Nov-23. Cement prices in the Central region held steady in December, with average rates ranging from Rs. 370 to Rs. 380 per bag. Following the significant price increases recorded between September and November, manufacturers are prioritizing the stabilization of these higher price points, bolstered by consistent demand in major markets like Uttar Pradesh and Madhya Pradesh.

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