Cement stocks crack on petcoke ban

SC order will increase fuel costs by 10-40%, making it imperative for companies in sector to raise prices; operating earnings to be hit

Share prices of cement companies fell sharply on Monday, on Friday's order of the Supreme Court reiterating the ban on use of petcoke in Delhi and the rest of the National Capital Region, to control pollution. The SC has clarified that the ban is applicable across Rajasthan, Haryana and Uttar Pradesh, too.

The SC also requested all states to enforce a nationwide ban on petcoke, the primary fuel and input material for cement makers.

The share price of Shree Cement, whose dependence on petcoke is 100 per cent, fell by 4.2 per cent to Rs 17,529. JK Lakshmi Cement fell by 4.6