Pet Coke Prices Dip in India, Buying Spree Continues

Domestic Pet coke prices have plunged remarkably in India as a consequence of persisting low import offers.

This week, Reliance Industries Limited has lowered its basic price by INR 800/MT to cope up with dwindling import offers from key international markets. The largest Pet coke producer in the country brought down its basic price to INR 4,400/MT in its latest price revision this week from INR 5,200/MT.

Buyers’ sentiment turned further bullish after price reduction. Market participants revealed that not only domestic purchases strengthened further, but also imports.

The recent price revision by Pet coke producer is a significant decrement after two successive downward revisions of INR 250/MT and INR 300/MT in the 1st and 2ndweeks of Oct’15 respectively.

“Pet coke offers from Saudi Arabia are around USD 42/MT, CFR India,” said an importer. While, offers from US are around USD 52/MT, CFR India, according to an official of a reputed cement company. Offers have remained stable against last week.

Pet coke imports to India in Oct’15

Pet coke imports increased by 5.3% in Oct’15 compared to Sept’15, according to SteelMint data.  In Oct’15, imports were recorded at 854,550 MT against 811,100 MT in the previous month. USA and Saudi Arabia remained as the most preferred regions of imports. Also, United Arab Emirates and China are figured among other prominent exporting countries.

Source: SteelMint Research

Domestic demand for Pet coke is likely to strengthen in near term as cement production is expected to increase in coming months owing to expected enhanced consumption. In context to cement demand, an official of the Cement Manufacturers’ Association said that demand for cement is expected to rise in near term.

Apparently, enhanced demand for cement, if eventuates, will raise operating rates of cement plants, necessitating more purchases of Pet coke to fuel enhanced production.

Meanwhile, Mr. Goyal of Anmol India Limited, a leading import house in India dealing in Saudi Arabian Pet coke, informed SteelMint that he sold Pet coke in domestic market at INR 42,00/MT (exclusive of taxes).