Amidst improved construction activities this year, India’s cement demand also got a boost resulting in a sharp 21% y-o-y rise in the country’s pet coke consumption in the first quarter of FY23 (April-June 2022). However, the surge in pet coke prices this year amid Russia-Ukraine conflict dampened the country’s imports, otherwise consumption would have risen more, informed market participants.
India’s pet coke imports increased by 61% y-o-y to 3.29 mnt in April-June 2022 with highest volumes coming in from USA followed by Saudi Arabia. Notably, pet coke imports are allowed by Director General of Foreign Trade (DGFT) only for select industries such as cement, lime kiln, calcium carbide and gasification industries.
Pet coke production up by 20% y-o-y
India’s pet coke production in April-June 2022 stood at 3.90 mnt, up by 20% against the same period last year. In June 2022, the output stood at 1.27 mnt, up by 16% against last year. Pet coke production showed consistent recovery after Covid-19. Subsequently, the June production has surpassed the pre-Covid level.
Pet coke price trend
Imported pet coke prices have seen a drop of 12-15% q-o-q basis in April-June quarter while domestic pet coke prices have risen by 20% q-o-q in this period. Indian cement manufacturers are currently heard to be booking more of imported pet coke from US, Saudi Arabia and even Venezuela and have even ditched thermal coal which is a costlier fuel at present against pet coke.
Outlook
Domestic pet coke output and consumption may see a downtrend in Q2 (July-September 2022) quarter amid reduced cement demand during monsoons.
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