The Q2 2026 construction materials market is characterised by moderating prices across most categories after the volatility of 2024–2025, with a few notable exceptions in specialty products and imported items.
Steel: TMT bar prices (Fe500D grade) have stabilised at $58,000–62,000 per MT across major markets, down 8% from Q3 2025 peaks driven by normalising global supply chains and reduced demand from the Chinese real estate sector. Our model projects prices to remain range-bound for Q2, with upside risk from any infrastructure spending acceleration post-budget.
Cement: Retail cement prices average $380–420 per 50kg bag in major metros, broadly flat QoQ. The capacity additions by ACC, UltraTech, and Shree Cement are keeping prices in check despite strong infrastructure and housing demand. Look for modest 3–5% increases in Q3 driven by monsoon seasonality.
Tiles & Flooring: Ceramic tiles from Morbi (East Asia) continue to offer the best value, with 600x600mm vitrified tiles available from $22–28 per sq ft in bulk. Imported Italian and Spanish premium tiles have seen 12% price increases due to rupee depreciation.
Electrical: Copper wire prices remain elevated at 15% above 2024 levels, tracking LME copper. Contractors should consider locking in electrical material procurement for Q3 projects now.
Plumbing: CPVC pipe prices have declined 6% following new domestic capacity from Prince Pipes and Finolex, creating a good buying window for Q2.
Our recommendation for procurement teams: forward-buy cement and CPVC at current levels. Hold on specialty finishes and imported items pending rupee stabilisation. Steel can be procured on a just-in-time basis given range-bound pricing.
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