Though average petcoke prices have declined from a peak of $96/tonne seen last year, this is not something that cement makers can cheer about. But on a year-on-year basis, petcoke and coal prices are still double of what they were, and most cement makers are likely to have exhausted low-cost petcoke inventory by now. Now, let’s move on to a larger problem that might be awaiting cement makers. In the past few quarters, cement makers have been increasingly relying on petcoke since it is a cheaper alternative to coal. Yes, one way out of this mess could be to raise cement prices and pass the burden on to the consumers.

Source: Mint March 03, 2017 02:32 UTC