Petcoke prices in India have remained flat since 1 Feb’16, when domestic producers had revised their ex-work prices last.
The stability in prices seems to have arisen on account of international offers remaining low that constrain domestic producers in increasing their ex-work prices to maintain import price parity.
Import offers have remained low in key international markets. According to an official of a reputed cement company, Saudi Arabia origin Petcoke, with around 9% Sulphur content, is offered at around USD 35/MT, CFR India. US origin material, with around 6.5% Sulphur content, is being offered at around USD 41/MT CFR India, according to the official.
The current offers are low enough to justify any upward price revision by the domestic producers in India.
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.
Prevalence of low prices in the domestic market has lead end-users in the country to actively procure from the home markets. As a result, stocks have gone lower.
A reputed trader in a conversation with CoalMint said that stocks had gone down due to strong demand. And, some traders expressed uncertainty over the direction of upcoming price revisions by domestic producers.
Imports continued to prevail in the country. Low offers have attracted many buyers in the country to procure from international markets.
During Feb’16, 79,7350 MT of Petcoke has been imported into the country upto the 24th of the month, according to SteelMint Research. Saudi Arabia and US were the prominent regions of import.T The top importers included: Shree Cement, Ramco Cement, Ambuja Cement and JSW Steel.
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