Petcoke import offers continue to rise due to prolonged supply tightness in the key international regions; likely to result in Indian cement producers gradually replacing Petcoke partially with Non Coking Coal.
The latest import offers of Petcoke from the key international regions have escalated to significant levels due to persistence of supply tightness. According to a reputed importer, the latest import offer of Petcoke(6.5% Sulphur) from USA has gone up to around USD 100/MT CFR India; and that of the material (9% Sulphur) from Saudi Arabia has moved up to around USD 90/MT CFR India.
The significantly high import offers are likely to lower Petcoke usage by the Indian cement producers. They are most likely to gradually start using coal to fuel their plants in view of the imports getting costlier.
In a communication with some traders in the country, it was learnt that demand for coal from cement producers has been slowly gaining momentum; an indication of the likelihood of consumption of Petcoke getting lower.
In the meantime, Indian Petcoke producers have kept their ex-works prices intact at the revisions on 1Oct’16. It may be recalled that Reliance Industries Limited (RIL), the largest Petcoke producer in the country, had hiked its ex-works price by INR 300/MT to INR 6,550/MT with effect from 1 Oct’16. Essar, the second largest producer in the country, also had raised its ex-works price for the material by the same amount to INR 6,540/MT, effective from the same date.
Source: Market Participants
Leave a Reply