Petcoke import offers have soared remarkably due to severe shortages prevailing in the key international markets on account of supply disruptions.
MARKET TREND
Shortage in international markets has unleashed active buying in the domestic market of the country. As a result, stocks in the country’s market have diminished, giving rise to shortages.
According to a reputed market participant, import offers of Petcoke (6.5% Sulphur) from USA has increased to around USD 59/MT CFR India; while, import offers of the material with 9% Sulphur from Saudi Arabia have gone up to around USD 55/MT CFR India.
Material for immediate loading is also not available in these international markets; and bookings against these offers will be delivered in end Jun/early July.
Domestic prices in the country have remained stable at the rates revised on 1stMay’16. 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. Also, 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 Participants
IMPORTS
During May’16(upto the 23rd of the month), 939,400 MT of Petcoke was imported into the country, data compiled by SteelMint Research shown. The top importers during the period were: Ultratech Cement, India Cement, JK Cement, among others.
FORECAST
Indian producers are likely to raise their ex-work prices with the onset of Jun’16, as indicated by the prevailing shortage in both domestic and international markets, and strong demand prevailing.
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