Speculation of Petcoke prices going up in India is rife among market players as shortage prevails.
Even in the key import region—the USA—the material has gone short in supply due to disruptions in several cokers.
Supply disruption in the US has led to offers of Petcoke with 6.5% Sulphur to go up to USD 50-51/MT CFR India, according to a reputed importer. While, offers of materials with 9% Sulphur from Saudi Arabia are at around USD 44/MT CFR India, according to the importer.
Reliance Industries and Essar, the country’s largest and the 2ndlargest producers, had last revised their respective ex-work prices on 1 Apr’16 at INR 4,150/MT and INR 4,140/MT.
Petcoke demand continues to be strong in the country as active production in end-industries is going on. Traders, spoken to by CoalMint, said that active purchases have lowered domestic stocks, leading to shortage.Thus, there is a clear likelihood of domestic producers in the country hiking their ex-work prices in the upcoming price revisions on account of shortage and rising import offers.
During FY16, 18,323 MT of Petcoke was produced in India, according to the Ministry of Petroleum and Natural Gas, Government of India.
Petcoke production in India during FY16
| Month | Qty(in 000’ MT) |
| Apr’15 | 1,126 |
| May’15 | 1,554 |
| Jun’15 | 1,263 |
| Jul’15 | 1,554 |
| Aug’15 | 1,534 |
| Sep’15 | 1,479 |
| Oct’15 | 1,523 |
| Nov’15 | 1,381 |
| Dec’15 | 1,508 |
| Jan’16 | 2,088 |
| Feb’16 | 1,627 |
| Mar’16 | 1,686 |
| Total | 18,323 |
Source: Ministry of Petroleum and Natural Gas, Government of India
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