The relaxation in the Supreme Court Petcoke ban also brought forth another development—price hikes by Indian refineries.
After the apex court allowing usage of Petcoke by the cement and lime industries, followed by the raise in the Basic Customs Duty on imports of Petcoke in the country to 10% from the erstwhile 2.5%, the refineries in the country have raised their ex-works prices, apparently aimed at capitalizing upon the expected rise in the domestic demand.
Reliance Industries Limited, the largest Petcoke producer in India, has raised it ex-works price by INR 500/MT to INR 8,150/MT; while, Essar, the second largest producer in the country, also has hiked its ex-works price by INR 500/MT to INR 8,135/MT.
Source: CoalMint Research
At the same time, Mangalore Refinery and Petrochemicals Limited also has lifted its ex-works price by INR 340/MT to INR 7,470/MT.
However, there was no significant change in the international offers, post relaxation of the ban, as the Basic Customs Duty was raised by the Indian government to 10% from the earlier 2.5%.
The latest offers for Petcoke(6.5% Sulphur) from USA are assessed at around USD 96/MT CFR India; and the recent offers for Petcoke(9% Sulphur) from Saudi Arabia are assessed at around USD 92/MT CFR India.
Source: CoalMint Research
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