In India, prices of petroleum coke produced domestically have spiked yet again, imposing threats of a twofold setback for cement producers by furthering their cost pressures amidst a bleak market outlook.
Reliance Industries Limited (RIL), the country’s largest pet coke producer, has hiked its price by INR 400/MT to INR 9,450/MT, with effect from 1 Jun’18.
Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of ONGC and Schedule “A” Mini Ratna Company, has also raised its price slightly by INR 50/MT to INR 8,280/MT effective 1 Jun’18.
In addition, IOCL’s Paradip refinery has conducted an auction of 90,000 MT of pet coke on 31 May’18. Reportedly, the highest bid received therein was of INR 7590/MT, which was higher by INR 450/MT over the reserve price and higher by INR 360/MT as compared to the last auction.
Notably, this signifies the aggressive buying by major cement manufacturers despite the supply tightness of imported pet coke in the market and further firming of the prices.
Nevertheless, in India the import offers for the petroleum-derived fuel have been falling since the multi-year high in Mar’18, because of the lingering uncertainty concerning the future industrial usage of the material owing to its proposed nationwide ban by the Supreme Court on environmental grounds.
The latest offers for pet coke (6.5% sulfur) from USA are assessed at around USD 108/MT CNF India, while offers for pet coke (9% sulfur) from Saudi Arabia are assessed at around USD 105/MT CNF India; both these offers have remained unchanged since the past three weeks.
Source: CoalMint Reasearch
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