Rising Cement Prices: Pressure from Petcoke Costs and Market Dynamics

Cement prices in India have surged due to escalating fuel costs, notably petroleum coke. May 2025 saw an average increase of 8% year-on-year in cement prices, influenced by robust demand and high fuel expenses. This trend impacts cement manufacturers' profitability, compounded by rupee depreciation and import dependencies.

Cement prices in India have sharply risen amid soaring input costs, especially petroleum coke, leading to an 8% average price increase year-over-year in May 2025, industry sources report.

With the eastern region witnessing the highest price hikes, demand remains strong, fueled by housing and infrastructure projects. Analysts predict 6-7% growth in FY2026 cement volumes.

International petcoke prices surged by 17%, exacerbating costs for cement producers, compounded by the depreciating rupee against the dollar. Though Indian cement remains competitively priced globally, profitability challenges loom amid ongoing fuel price pressures.