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Cement Demand Strong Through March 2026, But Geopolitics & Fuel Costs Pose Risks

Cement demand showed improvement in February 2026 and is projected to remain strong through March, indicating a positive short-term outlook for the sector. Manufacturers implemented regional price hikes in February, though some were later rolled back, and prices are expected to remain stable in March as companies focus on volume. However, the sector faces significant risks from geopolitical uncertainties, which could affect housing demand and market sentiment. Additionally, rising pet coke prices, a key fuel, pose a threat to future profitability and margins for cement companies.

Key Points: Cement Outlook Positive for March, Geopolitical Risks & Pet Coke Prices Key

  • Demand improved in February 2026
  • Prices hiked then rolled back in some regions
  • Geopolitical issues could impact housing demand
  • Rising pet coke prices threaten margins
  • Future price hikes remain a key monitorable
2 min read

Cement outlook for March positive, geopolitical issues, rising pet coke prices key risks: Nuvama

Cement demand improved in Feb 2026 and is expected to sustain in March, but geopolitical issues and rising pet coke prices are key sector risks, says Nuvama.

"Cement demand improved in Feb-26 and is likely to sustain through Mar-26 - Nuvama Report"

New Delhi, March 6

Cement demand showed improvement in February 2026 and is expected to remain strong through March 2026, according to a report by Nuvama.

However, the report highlighted that geopolitical uncertainties and rising pet coke prices may influence cement companies in the near term.

The report noted that cement demand improved in February 2026 and is likely to sustain through March 2026, indicating a positive outlook for the sector in the short term.

It stated "Cement demand improved in Feb-26 and is likely to sustain through Mar-26".

In terms of pricing, cement manufacturers implemented price hikes in several regions during February. Prices were increased by Rs 5-10 per bag in the North, West and Central regions during the month.

In the East and South regions, non-trade cement prices were increased by Rs 15 per bag in early February. However, the report noted that these price hikes were later rolled back during the same month.

Despite the earlier adjustments in February, the report highlighted that no price hikes have been taken across regions in March 2026 so far.

According to dealer checks cited in the report, cement prices are expected to remain stable at current levels during March, mainly due to efforts by companies to push volumes.

The report added that healthy demand and steady prices remain positive indicators for the cement sector. However, certain external factors may affect the sector's performance going forward.

One of the key risks highlighted in the report is the ongoing geopolitical issues, which could impact market sentiment and potentially affect housing demand in the future.

Another factor that could influence profitability is the increase in pet coke prices, an important fuel used by cement manufacturers. The report noted that pet coke prices increased by USD 13 per tonne month-on-month in February 2026 due to global cues.

While the increase in pet coke prices may not immediately impact companies, the report said that its effect is likely to be visible in Q1FY27E margins.

The report also pointed out that recent geopolitical volatility has the potential to affect demand and margins in the near term.

Given this backdrop, the report stated that future price hikes will remain a key monitorable for the sector.

- ANI

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Reader Comments

P
Priya S
As someone planning to build a house extension next month, I'm relieved prices are stable for March. The constant price hikes and rollbacks are so confusing for common people trying to budget. Please maintain stability!
A
Aman W
The pet coke price increase is a worry. Fuel costs always get passed on to the end consumer. If input costs keep rising, how long can companies hold prices stable? Eventually, home buyers will feel the pinch.
S
Sarah B
Interesting analysis. The link between global geopolitical volatility and local housing demand in India is something we often overlook. Stability is key for long-term investment in real estate.
V
Vikram M
The report is cautiously optimistic, which is fair. The rollback of price hikes in East and South shows companies are sensitive to market demand. Pushing volumes over prices in March is a smart short-term strategy.
K
Karthik V
While the outlook is positive, I have a respectful criticism. These reports often focus on short-term corporate margins. I wish there was more discussion on promoting greener alternatives to pet coke for sustainable growth.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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