The recent rise in Petcoke prices in India has in no way affected the demand.
Buyers continued to procure actively, even after domestic producers in the country hiking their ex-works prices by INR 500/MT, on 1st May’16. Domestic producers have not implemented any price revision since then.
It may be recalled that Reliance Industries Limited, the largest producer in the country, had hiked its ex-works price by INR 500/MT to INR 4,650/MT. Essar, the country’s second largest producer, also had hiked its ex-works price by the same amount to INR 4,640/MT.
Source: Market Sources
In the USA market, supply tightness of the material has prevented any downfall in export offers. Import offers of USA-origin Petcoke, with 6.5% Sulphur content, are at USD 51-52/MT CFR India, according to a reputed importer. However, Saudi Arabia-origin offers have gone down by around USD 2/MT due to improvement in supply. Import offers of the material with around 9% Sulphur from Saudi Arabia have gone down to around USD 45/MT CFR India, according to a market source. These offers pertain to the current import booking for delivery in May’16.
IMPORTS
Despite rising import offers, imports have gone up remarkably in Apr’16. SteelMint Research assessed that a mammoth quantity of 11, 54,080 MT was imported into India during the first month of the current fiscal.
The imports have gone up mainly due to buyers stocking the material ahead of the rainy season in the country.
Source: SteelMint Research
During Apr’15, a lesser quantity of 850,450 MT was imported into the country, SteelMint Research shows.
MARKET FORECAST
An assessment of the prevailing market in the country reveals that domestic prices are not likely to go down in the near future as shortage is prevailing amid strong demand.
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