Domestic Pet coke offers have increased again by INR 200/MT in March by the largest Pet coke manufacturers, amid low inventory level.
Essar Oil, one of the largest Pet coke manufacturers in India, has again raised its domestic offers by INR 233/MT from 1 Mar’16. The company has raised their offers owing to domestic scarcity of Pet coke stock in the market.
However, small Indian consumers are struggling with low stock in the market, which has driven big domestic Pet coke manufacturers to pull up offers.
A month earlier, Essar was offering Pet coke at INR 3,700-3,800/MT basic from Jamnagar, which has increased by INR 233/MT (up INR 200/MT, basic). Current increased rate of Essar Pet coke is INR 4,640/MT w.e.f 1 Mar’16.
On 1 Feb’16, Reliance Industries, the largest producer in the country, had also raised its ex-work prices by INR 300/MT to INR 3,800/MT.
Essar’s offers w.e.f 1 Mar’16
| ESSAR Prices For Gujarat) | ESSAR Prices (Outside Gujarat) | ||
| Essar Oil Prices | |||
| Product | Petcoke | Product | Petcoke |
| Basic Price | 3,990 | Basic Price | 3,990 |
| ED @14% | 559 | ED @14% | 559 |
| Sub Total | 4,549 | Sub Total | 4,549 |
| VAT@4% | 182 | CST 2% | 91 |
| VAT @ 1% | 45 | Total Price | 4,640 |
| Total Price | 4,776 | ||
Prices in INR
Quantity in MT
[su_quote]An East India-based trader said, “About 80-90% Indian cement manufacturers have shifted towards imported Pet coke. But, few small consumers are still dependent on domestic sources. Current unavailability of Pet coke inventory in the market supported domestic manufacturers to rise their offers.”[/su_quote]
He also added, Pet coke is a relatively new fuel in the Indian market but supply and demand are increasing at a high rate due to its cheaper cost and better availability compared to coal.
Imported Pet coke offers
SteelMint assessed that prices of imported fuel grade US petroleum coke (5-6% sulfur) delivered to India rose by over USD 2/MT to USD 41-42/MT, CFR India. While, Indian buyers are getting competitive offers from Saudi Arabia (9% sulfur) at USD 35-36/MT, CFR India. Meanwhile, Pet coke having 7% sulfur content is being offered at USD 41/MT, CFR Indian ports.
An Indian Pet coke trader highlighted, “USA, Saudi Arabia and Canada are the conventional source of Pet coke but other countries are also focusing towards India as it seems a big market now a days. Moreover, the current market is oversupplied and expected to fall further.”
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