India Cement Prices To Rise As Petcoke Hits USD 13 Per Tonne
Cement

India Cement Prices To Rise As Petcoke Hits USD 13 Per Tonne

A report by Nuvama Wealth Management indicated that the cost of cement in India could increase by the end of March or early April 2026 as producers face higher expenses for inputs linked to crude oil. The report noted that petroleum coke (petcoke) is a widely used fuel in cement manufacturing and that petcoke rose by approximately USD 13 per tonne (t) in February 2026. These developments are creating upward pressure on production costs for cement companies.

The report also identified rising packaging costs as an additional factor that may prompt producers to adjust selling prices, with some companies expected to pass higher input costs onto buyers later in the quarter. Cement demand remained stable and healthy during February and March 2026, supported by ongoing construction and infrastructure activity across the country. Earlier price increases on non-trade cement sales were largely reversed by the end of February and most regions reported retail prices remained steady through March.

Nuvama warned that stock performance of cement firms would be influenced by the trajectory of cement prices and petcoke costs in the coming weeks, since rising input costs and potential price adjustments could compress profit margins. Government capital expenditure showed signs of moderation, with overall government capex, including central, state and CPSE spending, declining 24 per cent year-on-year to around Rs 2 tn in January 2026. Cumulative capex from April 2025 to January 2026 stood at approximately Rs 20 tn, registering an increase of eight per cent year-on-year.

The report additionally highlighted weaknesses in the real estate sector that have affected cement demand trends, noting that real estate volumes remained sluggish and launches in volume terms fell 44 per cent year-on-year in January 2026 after falls of four per cent and seven per cent in 2024 and 2025 respectively. Overall the analysis depicted a cement market with healthy demand but rising crude-linked input costs—including petcoke and packaging—that may push prices higher by late March or early April 2026. Companies are likely to monitor pricing, demand and margins closely as the quarter progresses.

A report by Nuvama Wealth Management indicated that the cost of cement in India could increase by the end of March or early April 2026 as producers face higher expenses for inputs linked to crude oil. The report noted that petroleum coke (petcoke) is a widely used fuel in cement manufacturing and that petcoke rose by approximately USD 13 per tonne (t) in February 2026. These developments are creating upward pressure on production costs for cement companies. The report also identified rising packaging costs as an additional factor that may prompt producers to adjust selling prices, with some companies expected to pass higher input costs onto buyers later in the quarter. Cement demand remained stable and healthy during February and March 2026, supported by ongoing construction and infrastructure activity across the country. Earlier price increases on non-trade cement sales were largely reversed by the end of February and most regions reported retail prices remained steady through March. Nuvama warned that stock performance of cement firms would be influenced by the trajectory of cement prices and petcoke costs in the coming weeks, since rising input costs and potential price adjustments could compress profit margins. Government capital expenditure showed signs of moderation, with overall government capex, including central, state and CPSE spending, declining 24 per cent year-on-year to around Rs 2 tn in January 2026. Cumulative capex from April 2025 to January 2026 stood at approximately Rs 20 tn, registering an increase of eight per cent year-on-year. The report additionally highlighted weaknesses in the real estate sector that have affected cement demand trends, noting that real estate volumes remained sluggish and launches in volume terms fell 44 per cent year-on-year in January 2026 after falls of four per cent and seven per cent in 2024 and 2025 respectively. Overall the analysis depicted a cement market with healthy demand but rising crude-linked input costs—including petcoke and packaging—that may push prices higher by late March or early April 2026. Companies are likely to monitor pricing, demand and margins closely as the quarter progresses.

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