MSTC Ltd, on behalf of Indian Oil Corporation Ltd. (IOCL), has concluded e-auction for selling pet coke from its 11th oil refinery at Paradip in Odisha, yesterday i.e. on 9 Oct’18.
The auction has generated increased sales in terms of quantity; however the bid price continues to remain low in the process.
Out of the entire lot quantity of 70,000 MT, IOCL had managed to sell 65,000 MT Pet Coke at an average price of INR 6500/MT in the auction.
The Pet Coke offered in the auction had a sulphur content of 7-7.5%.
Bid price in the auction was INR 300/MT lesser than the previous term, which has now fallen to its lowest value in the last 3 months’s auction.
CoalMint has learnt from its market sources that the company was anxious to sell more quantity in the Oct’18 auction, as its previous two auctions in Sep’18 had seen sales of only 50,000 MT out of the total 140,000 MT being offered.
Hence to garner more sales IOCL had considerably cut its prices, at a time when two of its major participants were missing in the recent auction.
Pet Coke demand has indeed fallen in the country. As per the vessel-line data compiled by CoalMint Research, Imports of Pet Coke has decreased 42% Y-o-Y to 5.44 MnT during the first 9-months of CY18 (Jan’18-Sep’18), compared with 9.33 MnT in the corresponding period of CY17.
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