- Global cement prices showed a firm to rising trend in Q1 2026, supported by cost-side pressures despite mixed demand conditions across regions.
- Feedstock costs increased sharply, with higher coal, pet coke, and packaging inputs driven by geopolitical tensions and supply disruptions.
- Downstream demand from infrastructure and construction remained stable, though real estate weakness in some regions limited stronger price gains.
Asia
In Asia, cement prices remained stable initially and moved upward toward the end of Q1 2026 due to rising input costs. In India, fuel costs surged following the Iran war, which disrupted shipments through the Strait of Hormuz and affected supply of imported pet coke and coal, the largest cost component for cement producers. Fuel accounts for a major share of production costs, and rising seaborne prices forced producers to reassess procurement strategies. Domestic coal usage increased to reduce reliance on imports, while coke imports declined sharply due to supply disruptions and higher costs. At the same time, packaging costs rose significantly due to polypropylene supply constraints, adding further pressure. Demand from infrastructure remained supportive, though real estate slowdown limited stronger price increases.
Europe
In Europe, cement prices trended upward due to rising energy and regulatory costs. The implementation of carbon border adjustment mechanisms and emissions trading requirements increased clinker and production costs, prompting producers to raise prices. Imported cement and clinker costs also increased due to carbon-related charges, reducing the competitiveness of imports and supporting domestic pricing. Demand remained moderate, with cost pressures being the primary driver of price increases rather than strong consumption growth.
North America
In North America, cement prices remained firm, supported by higher fuel and transportation costs. Rising crude-linked input costs increased production expenses, while stable construction demand maintained steady consumption levels. Producers focused on passing through cost increases, though competitive pressures limited the extent of price hikes.
Analyst Insight
According to Procurement Resource, in the near term, cement prices are expected to remain firm, supported by elevated fuel and input costs, while demand conditions will determine the extent of further increases.
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