India’s pet coke consumption during the first seven months of 2022 (January-July 2022) rose by 23% y-o-y to 9.24 million tonnes (mnt), as per data maintained with CoalMint. In July 2022, the same rose by 10% m-o-m to 1.34 mnt.
Meanwhile, the country’s pet coke production was recorded at 9.29 mnt in the period under review, up by 21% y-o-y basis. For July, the same stood at 1.31 mnt, up by 4% m-o-m and by 10% against July 2021.
Both consumption and production volumes increased amid improved demand from the cement sector and the recovery from the Covid effect this year. Another factor that supported the output was high imported pet coke prices triggered by Russia-Ukraine conflict. Imported pet coke prices touched their highs in March-April 2022 (up to $294/t CFR India) amid the surge in crude oil and thermal coal prices due to sanctions by western countries on Russia.
Indian cement producers that had switched to cheaper Australian thermal coal in past two years were back to using pet coke as a fuel this year. Sanctions on Russia resulted in its increased demand especially from Europe, Japan, and South Korean which made its high-CV thermal coal prices touch as high as $400/t.
Cement demand is expected to grow by 7-8% to around 382 mnt in the current fiscal amid expectations of strong demand from rural housing and infrastructure sectors, as per the industry reports. This may boost the country’s pet coke production and consumption in the upcoming months.
Imported pet coke prices fall further
Imported pet coke prices that have been falling since June have come down further this week also.
The price of Saudi Arabia and US-origin pet coke is currently assessed in the range of $160-165/t CFR India. Meanwhile, Venezuelan pet coke, that was being offered at a cheaper rate compared to the above two origins till July, is now being offered in the similar range.
On the other hand, Australian 5500 NAR thermal coal that was once used by cement sector is currently being offered at $210/t CFR India.
Interestingly, Russian thermal coal is finding its prominence in Indian cement circuit with vessels heard to being booked for 6000-6100 NAR grade, low CV Russian coal at $188-192/t CFR India east coast.
In the last fifteen days, 0.37 mnt of pet coke has arrived at Indian ports majorly from Saudi Arabia and Venezuela whereas 0.47 mnt of Russian coal has arrived during the said period, with 70,000 tonnes booked directly by Ultratech Cement.
Outlook
It is expected that pet coke consumption will increase as the monsoon season draws to a close and several government infrastructure projects are on track.
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