Low Prices Keep Pet Coke Demand Active in India

Low Pet coke prices have kept buying spree active in India.

Domestic producers have kept their ex-work prices unaltered after revision on last day of the bygone year, seemingly due to import offers having not undergone changes.

Alongside, falling crude oil prices seem to have provoked among market participants the improbability of any Pet coke price upswing in near future. According to latest information received, crude oil prices have receded to USD 29.71/barrel as on 6 Jan’16.

The basic ex-work prices of Reliance Industries Limited (RIL), India’s largest producer, have remained at INR 3,500/MT. While, prices of Essar, the country’s 2^nd largest producer, are slightly lesser than that of RIL and stands at INR 3,490/MT.

The latest import offers for Saudi origin Pet coke with around 9% Sulphur content are USD 38-39/MT, CFR India. While, offers of US origin materials with 5.5-6% Sulphur are assessed at USD 45-47/MT, CFR India, according to a reliable market participant.

Meanwhile, low prices of domestic materials have turned many buyers in the country away from overseas markets and they have preferred procuring from home markets.

During Dec’15, Pet coke import to India was recorded at 631,770 MT, as per SteelMint’s data. The import volume in last month of the preceding year witnessed marginal decrement of 10% to 706,770 MT against Nov’15.  As in normal trend, the prominent importing regions were the Middle East and US.

Pet coke import into India in Dec’15

Source: SteelMint Research