Price of cement

Cement prices are forecast to rise 3.9% in 2026 to $169.0 per metric ton as ongoing and near-completion projects continue to support demand. The expiration of the Infrastructure Investment and Jobs Act at the end of 2026 is expected to curb funding for certain public infrastructure works, weighing on cement consumption. However, large data center developments backed by sizable government incentives will bolster purchases and keep pressure on prices upward. Combined with existing tariffs that raise the cost of imported alternatives, these forces are projected to push cement prices higher over the year.

The COVID-19 pandemic in 2020 initially slowed construction market growth, particularly because of reduced need for nonresidential projects. However, strong performance in residential construction lent support to downstream markets, preventing cement prices from declining during the year. In 2021, while the value of private nonresidential construction was still under pressure because of reduced the market for office spaces, residential construction remained robust, aided by low interest rates and the boost in consumer confidence following vaccine rollouts. This environment allowed cement prices to rise, bolstered by legislative measures such as the Infrastructure Investment and Jobs Act of 2021, which provided significant funding for public projects like roadways. Rising production costs because of inflationary pressures in 2022 further increased cement prices, continuing into 2023. Energy constraints, particularly in electricity, which is vital for cement production, have heightened because of stress on the national grid and have exacerbated cost increases across various supply markets. High labor costs and the rising price of key inputs like limestone, affected by rising energy prices, influenced the supply chain dynamics, contributing to the current price conditions. Over the five years to 2026, cement prices rose at a CAGR of 5.9%, reflecting these layered pressures and market shifts.