NewsSignals AI analysis·Business Line·
Propane is back in Morbi, but rising prices cloud ceramic makers’ recovery
Grade Abearish AI signal
Morbi’s ceramic industry is gradually resuming production as propane supplies recover, but rising fuel prices and continued supply uncertainty are threatening the sector’s recovery.
Varmora Granito has returned 80% of its plants to propane, while Kajaria Ceramics reported two propane price increases within 15 days and estimated that 40-50% of Morbi’s manufacturing units remain non-operational.
Further fuel price increases could intensify production costs, force additional tile price hikes and delay a broader recovery in India’s ceramic industry.
Bullish strength: 35/100
- Propane supplies have recovered, allowing Varmora Granito to restart 80% of its plants on propane.
- Manufacturers can switch between propane and natural gas depending on availability and relative costs.
- Tile price increases could help manufacturers offset higher production expenses.
Bearish strength: 65/100
- Propane prices increased twice within 15 days, including a ₹12.5 per SCM rise.
- Kajaria expects further fuel price increases and sees no visibility on prices declining.
- Natural gas prices in Morbi have climbed from approximately ₹50 to ₹85 per SCM.
- An estimated 40-50% of Morbi's manufacturing units remain non-operational.
- Higher production costs are forcing substantial tile price increases, potentially pressuring demand.
This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.