- Coal substitution remains primary headwind
- Adequate inventories reduce buying urgency
The Indian imported pet coke market remained inactive for the third consecutive week, with no confirmed spot trades reported. As per BigMint’s assessment, indicated offers firmly anchored at $120-121/t CFR India, while buyer bids stayed capped at $114-115/t. This $5-7/t bid-offer gap continued to prevent deal execution, keeping liquidity frozen.
Fuel economics favour coal over pet coke
Market participants consistently highlighted the shift in fuel economics toward thermal coal. Buyers cited US Northern Appalachian coal, along with South African and Mozambican material, as more economical alternatives, available at a $5-10/t advantage. Calorific-adjusted comparisons showed coal maintaining a structural cost edge over pet coke, limiting buyer willingness to engage.
Inventory comfort caps buying interest
End-users entered December with comfortable inventories after procuring material at lower prices earlier in Q3 and early Q4. Several buyers reported no fresh purchases since September, reflecting the absence of urgency. Despite marginal easing in US Gulf-India freight rates, landed pet coke costs remained uncompetitive.
Outlook: Wait-and-watch
The market is expected to remain dormant into early January. Buying interest is contingent on either a meaningful correction in pet coke prices or a sharp rise in thermal coal prices that narrows the current cost gap.
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