Petroleum coke prices, both imported and domestically-produced in India, have reduced drastically from the last month in several stages, as the country’s end-market demand for the energy commodity diminishes gradually.
Potential for restrictions on pet coke usage and lingering uncertainty over changing domestic regulations in the first half of this year have subdued demand for seaborne petroleum coke largely exported from the US Gulf Coast. Indian cement makers are seen buying US thermal coal to replace the petroleum coke that they use as a power source for their kilns.
With the viability of pet coke imports under threat, Indian buyers have been unwilling to risk their cargoes being turned away upon arrival at the port. So, they have limited their purchases of pet coke, and instead turned towards thermal coal as a substitute.
Consequently, India’s pet coke imports have fallen every month since the start of this fiscal, as the country’s apex court aimed at reducing toxic emissions from the polluting oil refinery byproduct.
As per the vessel lineup data compiled by CoalMint Research, India’s pet coke imports have decreased by nearly 14% M-o-M to 0.27 MnT in Oct’18, against 0.31 MnT in Sep’18.
Source: CoalMint Research
PRICE ASSESSMENTS
The current prices for pet coke (6.5% Sulphur) from USA are assessed to be varying in the range of USD 95-98/MT CNF India.
Pet coke (9% Sulphur) from Saudi Arabia is at present being offered at around USD 92-93/MT CNF India.
Currently, Indian domestic prices of pet coke are INR 9,350/MT (Reliance Industries Ltd.) and INR 8,280/MT (Mangalore Refinery and Petrochemicals Ltd.).
N.B.:
i. The above prices are effective from 1 Nov’18.
ii. These prices are exclusive of GST @18%.
iii. The MRPL price is for pet coke transported by rake/barge.
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