India’s domestic petroleum coke production has been 1.33 MnT (million metric tons) in Mar’20, against 1.23 MnT in Mar’19, registering a decent growth of approximately 8.1%.
Moreover, pet coke production in Mar’20 has increased by around 10% M-o-M, as compared to production of 1.21 MnT in Feb’20.
Furthermore, the country’s cumulative pet coke production during the last fiscal year FY20 (Apr’19-Mar’20) has been 14.65 MnT, against 13.67 MnT in the previous fiscal year FY19 (Apr’18-Mar’19), reflecting a moderate growth of 7.2% on a Y-o-Y basis.
The annual growth was a consequence of the gradual increase witnessed over the past few months, which has been maintained in the month of Mar’20.
Production in Mar’20 was higher by about 16.7% as compared to the average monthly production of 1.14 MnT in FY19, which typically remains at higher level in the month of March every fiscal.
India’s pet coke production is graphically represented month-wise for FY19 vis-à-vis FY20 in the above-mentioned featured image.
Interestingly, pet coke production has been robust in the fourth quarter of FY20, in spite of the nationwide lockdown due to the Coronavirus (Covid-19) pandemic, which was imposed with effect from 25th Mar’20. Pet coke being recognized as an essential commodity,had not seen much effect in the monthly production volume.
However, it is expected that negative aftereffects would be reflected upon production numbers from Apr’20 onwards as the lockdown has now been extended further until 17th May’20. In line with the increasing number of cases, the refineries have been asked to follow all lockdown protocols, and subsequently their capacity utilization rates have already been reduced to almost half.
Price Assessments
Pet coke import prices have considerably declined from their previously existing levels.
Market participants have indicated that the current average price of US-origin pet coke (6.5% Sulphur) is in the range of USD 70-71/MT CNF India, as compared to the prevailing rates of USD 75-76/MT in the last month. This indicates a decrease of USD 5/MT over last month’s price level.
Saudi-origin pet-coke (9% Sulphur) is presently being offered in the range of USD 68-69/MT CNF India, against USD 72-73/MT in the last month. This indicates a decrease of USD 4/MT over last month’s price level.
The FOB US Gulf Coast (USGC) price of pet coke (6% Sulphur), which is generally used as reference in international market, remains as USD 34/MT. This reflects no change in FOB price of USD 34/MT in the last month as well.
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