Rural, urban housing and infrastructure to drive cement demand growth at 7-8% CAGR

New Delhi [India]August 23 (Memorial): Rural and urban housing, infrastructure and commercial projects increase cement demand, 7-8 percent CAGR or 1.0-1.2 times in the medium term is expected to grow in real GDP growth.

According to a report of UBS, the capacity additions in the cement sector in India are likely to pass through the regions starting from 2025 from 2025.

For the region, the demand in the eastern market fell sharply due to early rains, but the prices remained constant LaPrices increased in 353. southern region per bag LaDespite the monsoon, 10 per bag.

The report said that after sharply fell in 25 financial years, prices will recover in 26 financial years and MY27.

In the middle to long term, the report added that prices will remain strong due to less players in the sector.

“We continue to be constructive on demand and the growth rate of the volume in the medium term in the medium term is expected to grow 1.0-1.2x. We see margin queues and expect the costs to fall within the next two to three years.”

In the report, “Considering strong capacity additions in 26-27 financial years, Pricehikes may be modest, but considering the strong consolidation tendency of the sector, we continue to be positive for margins and return rates.”

In August in August of the current year, cement prices remained constant compared to the previous month, but it was stronger on an annual basis.

The monsoon season has slowed down construction activities, especially in rural areas and infrastructure projects, which limited a weak attraction and the ability of companies to raise or maintain prices.

According to data published by the Ministry of Commerce and Industry on August 20, cement production (weight: 5.37 percent) increased by 11.7 percent in July 2025 in the same period last year. The Cumulative Index increased by 8.9 percent between April-July 2025-26 in the relevant period of the previous year. (MOMENT)