Cement prices are rising again as manufacturers pass on rising input costs—crude prices rose 21%, petcoke 26%, and non-coking coal 28% in March—because of the Ukraine war.
The surge in power and fuel costs has also raised the cost of road freight, accounting for 50% of cement transport.
Analysts at Nomura Global Markets Research estimate that every $10/tonne increase in coal costs increases per unit operating expense of cement companies by Rs 50/tonne, which would require Rs 3/bag price hike to maintain margin.
