Domestic petroleum coke production registered a strong 23% y-o-y rise to 14.8 million tonnes (mnt) in FY22 (April 2021-March 2022), as per CoalMint data, increasing marginally to the pre-Covid levels of FY20.
The growth in pet coke production this fiscal year indicates the improving construction activities since the outbreak of Covid-19.
Production in March 2022 also rose by 13% m-o-m to 1.4 mnt, CoalMint data showed.
With the government’s thrust on infrastructure projects, the demand for cement has gained momentum in this ongoing construction season.
According to market participants, the demand for pet coke in this ongoing peak construction season is supporting the domestic production of pet coke which is expected to continue till monsoon, a period which slows down infrastructure projects.
The Directorate-General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry allowed the import of pet coke for only select industries such as cement, lime kilns, calcium carbide, and gasification industries.
Further, the annual import quota for raw petroleum coke is fixed at 1.4 mnt and aluminium industries will import 0.5 mnt of calcined petroleum coke, thus, limiting the overall import quantity.
Short-term outlook
Amidst the ongoing volatility in thermal coal prices, pet coke prices continue to remain higher, incentivizing refineries to increase output. Demand, however, is likely to remain limited due to the higher prices.
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