India: Pet coke imports fall by 12% in November amid inventory buildup

India’s pet coke imports in November 2022 stood at 0.96 million tonnes (mnt), down by 12% m-o-m as compared to 1.09 mnt in October. But imports were quite high compared to 570,000 t in November 2021, as per CoalMint’s vessel line up data. Also, imports in January-November this year surged 128% compared to the same period last year.

The m-o-m fall in imports can be attributed to due to sufficient stock with cement players. In Oct’22, India had imported highest quantity of pet coke for the ongoing year so far which made cement players take a backseat next month.

“We had made purchases for pet coke in anticipation that coal and pet coke prices may go up in the upcoming months due to cold weather. However, this didn’t happen and in fact prices went down. But as we are sufficiently stocked up, we avoided making any bookings during November” quoted a cement manufacturer based in South.

But the y-o-y increase was majorly due to improved construction activities this year, as last year the country was reeling under the impact of Covid-induced lockdowns.

Due to the sharp increase in global energy prices, the cement sector has been under substantial margin pressure. The post-monsoon demand increase and current cooling off in energy costs, however, seem to be bright spots for the upcoming quarters.

Venezuelan pet coke imports surge

Qty in mnt

Around 70% of total imports were from the US and Saudi Arabia. Imports from the US and Saudi Arabia fell by 33% and 50% m-o-m, respectively. Shipments from Venezuela surged by 176% m-o-m to 140,000 t. The vessel turnaround time for Venezuelan pet coke is around three months, due to limited berthing facilities whereas for Saudi Arabia it is around 20 days.

Company-wise imports largely stable

Qty in mnt

Ultratech Cement imported 2,90,000 t of pet coke, down by 13% m-o-m in November. Dalmia Cement and Vedanta imports rose by 20% and 67% m-o-m, respectively.

Outlook

Pet coke imports are likely to rise in December as international pet coke prices started easing, and demand from real estate and infrastructure activities rebounded, post- monsoon.