Why Are Cement Prices Facing Cuts Amid GST Uncertainty In September 2025?
About The Report
JPMorgan’s latest channel checks reveal a challenging phase for India’s cement industry. The brokerage highlights widespread price cuts across most regions in September 2025, reflecting weak demand trends and ongoing GST-related uncertainties. With construction activity moderating in several states, cement companies are under pressure to balance pricing discipline and volume growth.
Regional Price Trends In September 2025
According to dealer feedback compiled by JPMorgan, cement prices witnessed cuts in multiple regions of India:
- North: Dealers indicated cuts of about ₹20 per bag due to sluggish demand and delayed construction projects.
- South: Dealers reported a wider range of reductions, between ₹10–20 per bag, reflecting competitive pressures and regional oversupply.
- East: Some dealers mentioned price cuts ranging between ₹10–25 per bag, indicating persistent weakness in semi-urban consumption.
- West: Unlike other regions, the West retained pricing discipline, avoiding cuts as cement producers maintained a steady hold on supply.
Why Is Demand Weak?
Industry insiders attribute weak cement demand in September to multiple factors. Seasonal disruptions, cautious housing project launches, and uncertainty regarding GST rates have weighed on cement consumption. Large-scale infrastructure demand has also slowed, further contributing to pricing pressure.
Impact On Cement Companies
Price cuts directly affect the earnings outlook for cement manufacturers. With raw material and fuel costs still elevated, lower realizations compress margins. Analysts at JPMorgan believe that large-cap cement players with diversified geographic presence may weather the situation better than smaller regional companies.
Policy And GST Angle
Uncertainty around GST classification for construction inputs continues to keep the cement market volatile. Dealers highlight that buyers remain cautious, delaying purchases until clear taxation guidelines emerge. Any favorable clarification could lift demand sentiment quickly.
Brokerage Perspective
JPMorgan’s overall stance remains cautious in the near term. While structural growth for the sector remains intact with infrastructure push, near-term earnings could see downside risk. Investors are advised to monitor regional demand cues and pricing discipline closely.
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Investor Takeaway
The September 2025 cement price cuts underline sector-wide challenges from weak demand and GST-related uncertainty. While Western India has maintained pricing discipline, other regions show stress. Investors should track developments on GST clarity and state infrastructure spending to gauge recovery prospects.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
