- Cement manufacturers remain hesitant on procurement
- Exports from Baltimore face setback following a bridge collapse
India’s pet coke imports dropped by 14% m-o-m to 1.54 million tonnes (mnt) in April 2024 as against 1.79 mnt in March 2024, as per data maintained with BigMint.
The pet coke market remained subdued as Indian cement manufacturers remained hesitant to make procurement decisions amidst the elections, which were affecting infrastructure projects and subsequently reducing the demand for cement.
Another reason being Baltimore bridge collapse. Coal exports from the port of Baltimore in the US faced a setback following a bridge collapse caused by a collision with a cargo ship on 26 March 2024, disrupting coal operations. According to Energy Information Administration (EIA) data, Baltimore ranked second in US coal exports during the first nine months of 2023, exporting 18.41 mnt, up from 12.97 mnt in 2022.
US continues to remain largest pet coke exporter
The US recorded the highest level of pet coke exports to India for the month. Imports from the US dropped by 37% m-o-m to 0.62 mnt in April 2024 as against 0.99 mnt in March 2024. Imports from Saudi Arabia were at 0.33 mnt, up two folds on a monthly basis. Imports from Russia saw a rise to 0.14 mnt in April 2024.
Imports by Ultratech jump multi fold
Ultratech cement recorded the highest level of imports at 0.49 mnt in April 2024, surged by around three-folds on monthly basis. Shree Cement recorded the second-highest imports at 0.16 mnt in April 2024. Tata Power raised its imports to 0.11 mnt as against nil a month ago.
Port-wise pet coke imports
Kandla recorded the highest level of imports at 0.39 mnt in April 2024 compared with 0.26 mnt in March 2024. Mundra recorded imports at 0.27 mnt (down 48% m-o-m) for April 2024. Vizag imported about 0.26 mnt
Indian imported pet coke prices down m-o-m
Prices (S6.5) in April recorded at $112.4/t, CFR Kandla against USD 114/t, CFR Kandla assessed in March 2024 in west coast of India. The price of pet coke (S6.5) is in the range of $111-112/t, CFR India this week against $112-113/t of the previous week towards west coast of India. The domestic consumption has a bit slowed due to ongoing General Elections. As the elections are coming to an end by early June, the demand of pet coke may again firm-up due to increased pressure for construction activity to complete before monsoon breaks in.
Outlook
Market sources opined that India’s cement demand is expected to grow moderately in FY25. Robust infrastructure development and steady demand from the housing sector are likely to support market sentiments. However, project allocations during elections and uneven monsoons could pose challenges. Additionally, due to the recent bridge collapse, imports may remain subdued, potentially favouring increased imports from Saudi Arabia.