The Petcoke market in India has eventually gained momentum and is now moving in full-swing.
The market has now recovered from the disruption caused by the ban imposed by the Supreme Court and subsequently relaxing it for the cement and lime industries in Delhi/NCR, Haryana and Uttar Pradesh.
Following the relaxation of the ban, the Indian Government had raised the import duty on Petcoke to 10%–a multiple of four times than the erstwhile rate of 2.5%–with the intent of encouraging consumption of domestic Petcoke and restricting the imports.
Petcoke sellers in the key international markets have kept their export offers at high rates mainly in view of supply tightness arising out of refinery maintenance shut-downs in the US, and also due to the strong importing affinity among the global Petcoke users.
Offers for Petcoke (6.5% Sulphur) from USA were reported at around USD 107/MT CFR India, lower by around USD 3/MT over the week-ago rates. On the contrary, offers for Petcoke (9% Sulphur) from Saudi Arabia were reported higher by around USD 2/MT in comparison with the offers in the last week. The offers from the Middle Eastern nation were at around USD 98/MT CFR India.
Source: CoalMint Research
In response the strong purchases going on in the country’s markets, Indian refineries have actuated further price upward revisions.
Reliance Industries Limited, the largest Petcoke producer in the country, has hiked its ex-works price by INR 350/MT to INR 8,350/MT. The price hike was done in two phases— it was raised by INR 300/MT on 1Feb’18, and subsequently a INR 50/MT was added to the price hike. Essar, the second largest producer in India, also has lifted its ex-works price by INR 350/MT to INR 8,335/MT.
Source: CoalMint Research
However, Mangalore Refinery and Petrochemicals Limited has reduced its ex-works price by INR 80/MT to INR 6,870/MT. The drop is in the price is apparently intended at capitalizing upon the strong demand.
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