New Delhi, June 9 -- The early onset of the monsoon plays spoilsport for cement demand and prices. Also, a temporary rise in power and fuel costs (P&F) is on the cards for cement makers in the June quarter (Q1FY26). The cost of imported petroleum coke (pet coke) saw a sudden spike in March. A surge in demand by Chinese companies in anticipation of higher tariffs led to pre-booking, which translated into higher procurement costs.

P&F costs are estimated at 30-35% of the cement sector's total production cost. Petcoke, which is derived from oil refining, is a key input material for cement manufacturers. Typically, cement companies import petcoke and stock fuel inventories for two-three months. So, the impact on profitability due to movement...