Indian refineries cut pet coke prices for July’24, RIL lone exception

Indian refineries, except Reliance Industries Limited, have announced price cuts for pet coke for July 2024 deliveries.

• MRPL cuts prices by INR 80/t: MRPL decreased its pet coke prices by INR 80/t for July shipments. Prices for road supply are at INR 10,470/t and for rail supply at INR 10,170/t. MRPL maintains an INR 300/t price difference between road and rake supplies to cover customers’ costs for moving materials from the refinery to the loading area. MRPL mostly serves major Cement customers mostly through rakes.
• CPCL slashes prices by INR 220/t: Chennai Petroleum Corporation Limited (CPCL) has decreased its pet coke prices for road supply for July by INR 220/t to INR 13,140/t. There is no rake loading facility at CPCL. The average dispatch of pet coke is 40,000-45,000 t per month. CPCL majorly supplies to Tamil Nadu and Andhra Pradesh.
• RIL raises pet coke prices marginally for July: Reliance Industries Ltd (RIL) has marginally raised pet coke prices to INR 12,473/t ($150), up by INR 34/t ($0.5) m-o-m for July sales. Stability in imported pet coke prices have supported domestic prices. The current month’s price is higher by 2% y-o-y.

Imported pet coke price trends – Prices of imported pet coke (6.5% S) in the international market continued to remain unchanged w-o-w in the range of $106-107/t CFR west coast India and $108-109/t CFR east coast India. The onset of monsoon has reduced demand for pet coke in India.

Outlook: Pet coke prices are expected to move within a narrow range in near term due to the monsoons. Also, with imported pet coke prices being rangebound and domestic refineries slashing pet coke prices, it is evident that infrastructure and construction activities and demand will continue to remain subdued in the rainy season.