If you are planning a project in Kerala for April, May, or June 2026, you need to read this now.

The construction market in Kerala is currently flashing warning signs. While government reports are still catching up, the ground reality in Kottayam, Kochi, and Trivandrum tells a different story.

At Griham Data, we track daily price movements from over 50 dealers across the state. Our data for Q1 2026 (Jan-Mar) has shown volatility that most estimators missed.

Here is your detailed forecast for Cement and Steel in Q2 2026, and exactly how you should adjust your estimates to avoid losses.

1. The Cement Forecast: "Stabilization before the Storm"

Current Status (Jan 2026): ₹385 - ₹390 / bag (OPC 53 Grade)

Q2 Forecast (April - June 2026): ₹400 - ₹415 / bag 📈

What is happening?

In January, cement prices in Kerala actually dropped slightly to ₹385 due to a temporary surplus. Many contractors are currently enjoying this "discount."

Do not get comfortable.

Why Prices Will Rise in Q2:

• Fuel Costs: Coal and Petcoke prices are inching up globally. Since energy is 40% of cement production cost, manufacturers (Ramco, UltraTech) are preparing for a price hike.

• Pre-Monsoon Rush: Q2 (April-May) is the peak "roof casting" season in Kerala before the June monsoons hit. Demand will skyrocket, and dealers will remove discounts.

• Govt Infrastructure Push: Major projects like the SilverLine alternatives and highway expansions are consuming huge volumes of bulk cement, tightening supply for private builders.

✅ Action for Contractors:

• Lock in prices now: If you have a slab work in April, negotiate a "fixed rate" with your dealer today.

• Estimate wisely: Do not quote ₹390 in your BOQ (Bill of Quantities). Quote ₹420 to be safe.

2. The Steel Forecast: "The Silent Climber"

Current Status (Jan 2026): ₹65 - ₹66 / kg (Fe 550 TMT)

Q2 Forecast (April - June 2026): ₹68 - ₹70 / kg 📈

The Trend:

Steel has been creeping up quietly. In December 2025, it was ₹64/kg. Now it is touching ₹66/kg.

While there is no sudden "shock," the steady climb is dangerous for long-term projects.

Key Drivers for Q2:

• Global Scrap Shortage: International scrap steel prices are rising, forcing Indian manufacturers to raise TMT bar prices.

• Power Tariffs: Industrial electricity rates in India are under pressure, adding to production costs.

✅ Action for Contractors:

• Buy Early: Steel does not spoil. If you have cash and site space, buy your full requirement for the foundation and columns now.

• Check the Brand: Secondary brands (local TMT) might offer ₹62/kg, but primary brands (Tata, JSW) will likely cross ₹70/kg. Be clear with your client about which brand you are using.

3. The "Red Alert": Solid Blocks & Labor

While everyone watches Cement and Steel, the real killer in Q2 2026 is going to be Masonry.

• Solid Blocks: As we reported last week, 6-inch block prices in Kottayam jumped from ₹42 to ₹47.50 (+13%) in just 30 days. This trend is spreading to Ernakulam. Expect ₹50/block by May.

• Labor Wages: April is "Vishu" season. Migrant labor availability drops, and local labor demands higher daily wages. Expect Mason charges to touch ₹1,250 - ₹1,300/day in urban centers.

Summary: How to Protect Your Profits in Q2

If you are estimating a 2,000 sq ft villa today, here is the "Griham Adjustment Factor" you should use:

Check Our current price List.Above Price is Volatile.

The Bottom Line:

The "National Average" says inflation is low. The "Kerala Reality" says construction costs are up 8-10% compared to last year.

Don't quote low to win the project, only to pay out of your pocket later.

Get the Data Before You Quote.

At Griham, we update these prices every week.

👉 [Download the Full Q2 2026 Kerala Material Price List (PDF) - Free]