There has been no significant decline in the Petcoke export offers from the key international markets—USA and Saudi Arabia.
The offers were at high rates as the refineries in the US had been undergoing maintenance, constricting the supply. At the same time, there was an increase in the global demand, which led to the spike in the offers.
However, the refineries in the US have now started functioning, as such the supply is expected to go up in the near future, and that will also bring down the offers.
The latest offers for Petcoke (6.5% Sulphur) from USA were assessed at around USD 113/MT CFR India. And the recent offers for Petcoke (9% Sulphur) from Saudi Arabia were assessed at around USD 110/MT CFR India. Both the offers have remained unchanged in comparison with those assessed on week-on-week basis.
Source: CoalMint Research
In India, the demand has contributed to remain strong as user-industries purchased actively. Due to the high international offers most Indian buyers have preferred the domestic market for their Petcoke procurement—as such, strong demand has been prevailing in the country’s domestic markets.
Given the prevalence of strong demand and the current rates of international offers, there seems to be no prospect of the Indian refineries lowering their ex-works prices in the next month.
The prevailing domestic Petcoke prices in India are: INR 8,950/MT(Reliance Industries Limited), INR 8,935/MT (Essar) and INR 7,860/MT (Mangalore Refinery and Petrochemicals Limited).
Source: CoalMint Research
As the Indian buyers have preferred the home market, there was no spurt in the imports. During the 1-20Apr’18 period, around 454,420 MT of Petcoke was imported in India, according to the data compiled by CoalMint Research.
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