The imported price for U.S.-origin pet coke with different sulphur content has recorded a drop of $20-27/t against last month’s prices.
The price for U.S.-origin pet coke with 6% sulphur is assessed at $174-175/t, against $192-193/t last month, CFR India basis. The latest CFR India price for petcoke with 8.5% sulphur is assessed at $ 131-132/t against the earlier price of $158-159/t last month. Thus, there is a sharper drop of $26-27/t against last month.
The sea freight for a Supramax vessel (50000-55000 MT) is currently assessed at $62/t, indicating a nominal increase in freight by $2/t against November.
From its historic highs of $260/t, the price has sharply corrected in last two months by in a whopping range of $75-100/MT for U.S. origin pet coke.
The sharp decrease in pet coke prices is majorly due to reduced buying by cement manufacturers. The reduction of 22-25% m-o-m basis in various-origin coal prices like S.African, U.S, and Australian coal also created pressure on petcoke prices, which is the major alternate fuel for cement industries.
Based on the current market trend in the international market, major domestic petcoke producers RIL and Nayara Energy may go for further price reduction of over Rs 1000/MT, from 1st Jan’22. These companies have already made a m-o-m downward revision in prices by INR 5,500/t in Dec’21. Other companies may also follow the trend with some variations based on marketing conditions applicable at these refineries.
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