Indian Oil Corporation Ltd. (IOC), the country’s second-largest producer of petroleum coke, has completed online auction of pet coke from Paradip refinery in Odisha on Thursday, 7th Nov’19, wherein the offered quantity was 40,000 MT.
The reserve price was declared during the live auction as INR 4,540/MT.
A quantity of 30,000 MT was sold out of the total offered quantity of 40,000 MT, at the reserve price of INR 4,540/MT. Thus, a quantity of 10,000 MT was left over from this auction.
The reserve price in this auction was decreased by INR 80/MT, as compared to the reserve price of INR 4,620/MT in the last auction.
IndianOil’s last auction was conducted on 25th Sep’19 for 50,000MT, wherein a quantity of 40,000 MT was sold at the reserve price of INR 4,620/MT.
Notably, the reduction in reserve price for this auction was much less than the price reduction of INR 728/MT by Reliance Industries (RIL) effective from 1st Nov’19. Such wide variation in price reduction is possibly because the market dynamics of Paradip in the East Coast are quite different than RIL in the West Coast.
IndianOil’s pet coke auction prices are already lower than the RIL price and the successful bidders can uplift their purchased quantities by trucks only. Also the transportation rates charged by the transporters are high due to strong influence by unions at Paradip.
Market participants indicated that in the current auction, 20,000 MT was purchased by cement manufacturers located in Chhattisgarh, while the remaining 10,000 MT was purchased by cement manufacturers located in Odisha.
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