According to rating agency India Ratings and Research, cement prices in northern India is expected to increase after the Supreme Court’s banned the use of pet coke in the National Capital Region (NCR) from November 1. Cement players in the northern region particularly from Rajasthan, where most of the clinker plants are situated, will have to use either domestic coal or imported coal from November 1.
"This will result in an increase in power and fuel cost per tonne per bag by Rs 8-10. Cement producers will pass this increase in costs to the final consumer, leading to an increase in cement prices," India Ratings said in a release. The rating agency feels there would be intermittent headwinds as cement manufactures could have some inventories of pet coke in place and the court has not clarified on the use of this stock post ban.
The Supreme Court last week had banned use of polluting fuel furnace oil and pet coke in industrial units in NCR from November 1 in the districts of Uttar Pradesh, Haryana and Rajasthan which fall under NCR.
