India’s petroleum coke consumption in the month of May is reported as 1.52 million tonnes (mn t), as compared to 2.14 mn t same month last year, registering a substantial decline of 28.7%. This is primarily due to lower capacity utilization of major cement manufacturing companies, which consume bulk quantities of pet coke, amid prevailing restrictions and protocols required to be followed against the Covid-19 virus outbreak.
On cumulative basis, the consumption during Apr-May’20 is reported as 2.66 mn t as against 4.39 mn t in the corresponding period of last year, reflecting a decrease of approximately 39%.
However, pet coke consumption in May’20 has increased by about 34 % month on month compared with the consumption of 1.13 mn t recorded in Apr’20. This is mainly due to gradual ramping up of production by cement and other industries as compared to Apr’20, when stringent restrictions were put in place.
Further, pet coke consumption of 1.52 mn t in May’20 is lower by around 15% against the annual average consumption of 1.80 mn t in FY20. Although the consumption has shown upward trend in May, but it still falls short of the average consumption in FY20.
Pet coke consumption in FY21 started with a notable negative growth in Apr’20 at 49%, which had earlier increased gradually over several months in later half of FY20, except in the month of March’20 which saw decline of 22%. Later on, it started recovering due to relaxations provided by the government with guidelines and protocols.
A few major cement manufacturers gradually increased the production level in May’20, which is reflecting in the increased consumption of pet coke. However, as migrant laborers working in infrastructure projects in metros/cities have already gone back to their homelands, the demand for cement remains at lower level. It may take few more months for consumption to rise up to last year’s level.
Note: Pet coke consumption data represents domestic sales by oil companies, sales from special economic zone (SEZ) refinery in DTA and import by private parties on provisional basis which will be updated in due course.
Reported by Aditya Sinha
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