Cement Prices Likely To Rise As Petcoke Costs Increase
Cement

Cement Prices Likely To Rise As Petcoke Costs Increase

A report by Nuvama Wealth Management said cement prices in India could rise by the end of March or early April 2026 as producers face higher input costs linked to crude oil. The report identified rising petroleum coke and packaging material costs as principal drivers of upward pressure on production expenses. Petroleum coke, a fuel used in cement manufacturing, rose by about 13 per tonne (t) in US dollar terms in February 2026, a change that could be passed on to buyers. Producers may adjust prices later in the quarter to protect margins.

Cement demand remained stable during February and March 2026, supported by ongoing construction and infrastructure activity, and earlier price increases on non-trade sales were largely reversed by the end of February. Retail prices remained broadly steady through March in most regions. The persistence of demand may allow firms to manage price adjustments rather than apply uniform increases. Market responses will vary by region and logistical cost pressures.

Nuvama said that stock performance of cement companies will likely be influenced by the path of cement prices and petroleum coke costs in the coming weeks. Rising input costs including crude linked fuels and packaging may squeeze profit margins and prompt firms to monitor pricing and demand closely. The balance between input inflation and end demand will determine whether companies absorb costs or transfer them to customers. Analysts will watch forthcoming quarterly results for evidence of margin pressure or successful cost pass through.

Government capital expenditure showed moderation, with overall capex declining 24 per cent year-on-year to around Rs 2 trillion (Rs 2 tn) in January 2026 and cumulative capex from April 2025 to January 2026 at about Rs 20 trillion (Rs 20 tn), up eight per cent year-on-year. The report noted that real estate launches fell 44 per cent year-on-year in January 2026, and overall healthy demand could still be offset by rising crude linked input costs that may push cement prices higher by late March or early April 2026.

A report by Nuvama Wealth Management said cement prices in India could rise by the end of March or early April 2026 as producers face higher input costs linked to crude oil. The report identified rising petroleum coke and packaging material costs as principal drivers of upward pressure on production expenses. Petroleum coke, a fuel used in cement manufacturing, rose by about 13 per tonne (t) in US dollar terms in February 2026, a change that could be passed on to buyers. Producers may adjust prices later in the quarter to protect margins. Cement demand remained stable during February and March 2026, supported by ongoing construction and infrastructure activity, and earlier price increases on non-trade sales were largely reversed by the end of February. Retail prices remained broadly steady through March in most regions. The persistence of demand may allow firms to manage price adjustments rather than apply uniform increases. Market responses will vary by region and logistical cost pressures. Nuvama said that stock performance of cement companies will likely be influenced by the path of cement prices and petroleum coke costs in the coming weeks. Rising input costs including crude linked fuels and packaging may squeeze profit margins and prompt firms to monitor pricing and demand closely. The balance between input inflation and end demand will determine whether companies absorb costs or transfer them to customers. Analysts will watch forthcoming quarterly results for evidence of margin pressure or successful cost pass through. Government capital expenditure showed moderation, with overall capex declining 24 per cent year-on-year to around Rs 2 trillion (Rs 2 tn) in January 2026 and cumulative capex from April 2025 to January 2026 at about Rs 20 trillion (Rs 20 tn), up eight per cent year-on-year. The report noted that real estate launches fell 44 per cent year-on-year in January 2026, and overall healthy demand could still be offset by rising crude linked input costs that may push cement prices higher by late March or early April 2026.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement