India: Domestic pet coke production doubles in a decade to 16 mnt in FY’22

India’s pet coke production rose nearly by 100% in the last 10 years to touch 15.5 million tonnes (mnt) in FY2021-22, while the same stood at 7.8 mnt in FY2012-13 (FY13). The production encompasses various domestic grades of petroleum coke and includes fuel grade (high sulphur), anode grade (low sulphur) and calcined petroleum coke also.

Pet coke production has increased gradually over the years. During 2012-13, production was at 7.8 mnt, which jumped to 11.3 mnt in FY14. It gradually increased during FY18 to 12.92 mnt and reached 14.65 mnt in FY20.

The Indian government, in October 2017, banned the use of pet coke amid environmental concerns. Production fell to 12.05 in FY19 due to this reason. However, the same was revoked by the government and it allowed cement industries to use pet coke as feed stock.

Production fell to 12.04 mnt in FY21 due to the pandemic. The central and various state governments imposed regulations/restrictions to control Covid-19 from 25 March, 2020 onwards which affected production of pet coke from different refineries. However, pet coke production showed an encouraging trend from the third and fourth quarters during FY21 after Covid restrictions were reduced by the authorities. The same surpassed pre-Covid levels of 14.6 mnt of FY20.

Production of pet coke has remained mostly in the range of 5-6% in the last 10 years. In FY22 pet coke’s share in total petroleum products increased to 6.1% from 5.2% during FY21. In quantity terms, petcoke production in FY22 was 15.5 mnt out of the total production of all petroleum products of 254.3 mnt.

India’s cement production expected to reach 381 mnt

India’s cement production is expected to reach 381 mnt in FY23. The same rose 65% in FY22 to 353(E) mnt from 230.49 in FY2012-13. The increase in cement production can be attributed to rising demand from the housing sector and increasing infrastructure and construction activities. The PM Gati Shakti Yojana also boosted cement demand. However, India’s pet coke consumption has fallen by 39% in the last five years to 15.8 mnt in FY2021-22. The fall can be attributed to the ban on pet coke usage by the Indian government and Covid-19 restrictions.