Domestic Pet coke prices have followed a stable trend as producers in India did not revise their prices since 1 Feb’16.
Market atmosphere is active with strong demand, emanating from a slew of end-user industries. Low prices have triggered bullish buying among end-users.
Traders, spoken to by CoalMint said that buying continued to be strong from end-user segments like textile, chemical and brick apart from the predominant consumer—cement industry.
In the meantime, import offers are assessed low, indicating that Indian buyers will continue to book imports. Market participants have revealed that the current import offers of Pet coke (with around 9% Sulphur content) from Saudi Arabia arein the range ofUSD 35-37/MT, CFR India. Offers of material (with around 6.5% Sulphur content) from USA are quoted at USD 40-42/MT, CFR India, according to market participants.
With the prevalence of significantly low offers, Indian producers are unlikely to raise their ex-work prices in the near future.
On 1 Feb’16, Reliance Industries, the largest producer in the country, had raised its ex-work prices by INR 300/MT to INR 3,800/MT. Essar, the country’s 2nd largest producer, also had hiked its ex-work prices by the same amount to INR 3,790/MT.
The recent developments in the global oil and gas industry have negated any prospect of import offers going upwards. The recent build-up of crude oil stocks in the US has raised concerns of global over-supply, countering the moves by Middle Eastern and Russian oil producers to cut output. The global over-supply will restrict any upward crude oil price movement.
In the last week, crude oil inventories in the US rose by 2.1 million barrels to 504.1 million barrels, the Energy Information Administration (EIA) data shows.
Imports continued to land at Indian ports as buyers, mostly cement companies, preferred to take advantage of low import offers. According to SteelMint Research, 788050 MT of Pet coke was imported during Feb’16, upto the 18th of the month.
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