Pet Coke Prices Likely to Move Down as Offers Soften Further

Pet coke prices have remained stable in Indian markets amid strong demand.

Indian producers have not changed their ex-work prices from the last price revision on 7 Oct’15.

But, declining import offers more or less indicate consequential likelihood of domestic prices going down in near term. Market participants apprehend another round of price cut by domestic producers with the onset of Nov’15.The major reason behind price cut is declining prices in key international markets, arising due to twin effects of oversupply and soft crude oil prices.

According to a procurement personnel of a leading cement company in India, the latest Pet coke offers from Saudi Arabia and US are assessed at USD 42-43/MT and USD 52/MT respectively on CFR India basis.

Some traders spoke to SteelMint that demand is speculated to rise further in the coming months, but prices are unlikely to move up. Also, influx of imports will continue to prevail due to low offers.

Domestic prices have already fallen considerably due to shrinking prices in international markets. Reliance Industries Limited, the largest Pet Coke producer in the country, had lowered its ex-work price by INR 250/MT and INR 300/MT in the first and second week of Oct’15 respectively; bringing down ex-work price to INR 5,200/MT.

Pet coke imports to India in FY16

Source: SteelMint Research