Mangalore Refinery and Petrochemicals Limited (MRPL) has increased its petroleum coke price for road supplies with effect from 1st Nov’20 by INR 490/t to INR 8,250/t, from INR 7,760/t of last month.
MRPL has also increased its pet coke price for supply by rake/barge by INR 490/t to INR 7,950/t from INR 7,460/t of last month.
Price Commentaries
Reliance Industries Limited (RIL), India’s largest pet coke producer, has increased its price by INR 255/t in the current month. There has been consistent increase in pet coke price by RIL every month from Jul’20 onwards. The total increase has been 3,154/t over the base price of INR 5,697/t in Jun’20, an increase of over 55%.
MRPL has increased its price by INR 490/t in Nov’20 which is higher than RIL’s increase of INR 255/t. MRPL’s price increases from Jul’20 has been 1,760/MT, or 27%, which is much lower than the total price increase by RIL.
MRPL’s Mangalore-based oil refinery is presently running at reduced crude throughput of around 50%. Hence, the production of pet coke in the current month is expected to be approximately 50 kilotons (kt) against the average monthly production of 90 kt. Though there has been marginal increase in availability of pet coke in recent months with revival of economic activities, the production is expected to increase only from Dec’20 onwards.
MRPL has maintained a price difference of INR 300/t between its road and rake/barge supplies, which is the approximate expenditure incurred by a customer for shifting the material from refinery to rake/barge loading area.
Month-wise pet coke prices from Nov’19 to Nov’20 for MRPL and RIL are compared graphically in the following chart.
From the chart, it may be observed that in the month of Nov’20, the gap between MRPL and RIL prices has narrowed and MRPL price is now lower by INR 601/t than RIL, which was previously lower by INR 836/t in Oct’20.
The variations between MRPL and RIL prices during the past one year period has been ranging from INR 836/t in Oct’20 to INR 793/t in Jun’20. MRPL price has been lower in most of the months and on overall average basis, it is lower than RIL by about INR 450/t.
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