India's cement market is facing a new round of price pressure. Nuvama Wealth Management issued a report pointing out that cement prices in India may rise in late March or early April 2026 due to rising input costs related to crude oil. The rising cost of petroleum coke and packaging materials was identified as the main factor driving up production costs. Petroleum coke, a key fuel for cement production, rose by about $13 per ton in February 2026 in US dollar terms, a cost increase that may eventually be passed on to consumers. Producers may adjust prices later in the quarter to protect profit margins. The Game
of
Demand Stabilization and Cost Transmission During February-March 2026, cement demand in India remained stable, benefiting from continued building construction and infrastructure activities. Previously, the price rise of non-trade sales had basically recovered at the end of February, and retail prices in most areas remained stable in March. The resilience of demand enables enterprises to flexibly manage price adjustment rather than adopt a unified price increase strategy, and the market reaction in different regions will be different due to the pressure of logistics costs.
Nuvama pointed out that the trend of cement prices and petroleum coke costs in the coming weeks will directly affect the stock price performance of cement companies. Rising input costs such as crude oil related fuels and packaging may squeeze profit margins, prompting companies to closely monitor pricing and demand dynamics. The balance between input inflation and end demand will determine whether companies absorb costs on their own or pass them on to customers, and analysts will be watching upcoming quarterly results closely for evidence of margin pressure or successful cost transmission. The slowdown of
government expenditure and the cooling
of the real estate market showed a slowdown in government capital expenditure. In January 2026, the overall capital expenditure fell by 24% year-on-year to about 2 trillion rupees. From April 2025 to January 2026, the cumulative capital expenditure was about 20 trillion rupees, an increase of 8% year-on-year. The report also noted that in January 2026, the volume of new real estate sales plunged 44% year-on-year. While overall demand remains healthy, higher crude oil-related input costs could still push cement prices higher in late March or early April.
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