- Prices hit highest level in nearly two years
- India’s petcoke imports fall by 33% m-o-m
Nayara Energy revised its petcoke price to INR 18,670/tonne (t), effective 1 April 2026, up by INR 1,630/t from INR 17,040/t on 17 March. This marks a 9.5% increase over the last revision. Notably, the company had already revised prices twice in March, indicating sustained upward pressure. On a y-o-y basis, prices are higher by 25.1% compared with INR 14,930/t in April 2025, reaching the highest level in nearly two years.
The sharp rise is primarily driven by elevated global prices and continued tightness in domestic availability. Nayara has emerged as a key supplier in the merchant market amid constrained supply conditions.
Factors driving price rally
Geopolitical tensions lift landed costs of imports: The ongoing geopolitical tensions involving the US and Iran have significantly impacted global trade flows, particularly through the Strait of Hormuz. This has led to higher marine insurance premiums, vessel rerouting, and increased freight costs, pushing up landed prices of imported petcoke.
At the same time, domestic supply remains restricted. Reliance Industries continues to consume its entire petcoke production captively, limiting availability in the open market and strengthening Nayara’s pricing power.
Imported pet coke prices surge m-o-m: Imported petcoke prices also increased sharply in March 2026 compared with February. US-origin petcoke offers rose to around $155-165/t CFR India in March from about $120-125/t in February, driven by higher freight costs and supply disruptions linked to Middle East tensions. The rise in landed costs further discouraged buying, with most consumers adopting a cautious approach and relying on domestic supply or alternative fuels.
Pet coke imports to India fall: India’s petcoke imports dropped sharply by 33% m-o-m to 0.6 million tonnes (mnt) in February 2026, as buyers avoided high-priced imports. Cement and industrial users increasingly relied on domestic supply and alternative fuels such as coal, further tightening the domestic market.
India’s pet coke production falls marginally: On a cumulative basis, India’s pet coke production reached 13.49 mnt in April-February of FY’26, slightly lower by 1.2% y-o-y.
Cement prices rise on cost pressure
Cement prices in India witnessed a mild uptick during March 2026, mainly driven by rising input costs. Sharp increases in petcoke, coal, and freight due to ongoing geopolitical tensions significantly raised production costs for manufacturers. At the same time, companies attempted price hikes across regions to offset these pressures, although weak demand limited full pass-through. Overall, the market remained cost-driven, with pricing gains supported more by input inflation than strong consumption demand.
Outlook
The planned shutdown of Nayara Energy’s Vadinar refinery for around 35 days in April may further tighten domestic petcoke availability. With nearly 8% of India’s refining capacity temporarily going offline, supply of petroleum by-products, including petcoke, could be impacted in the short term. This comes amid ongoing geopolitical tensions in the Middle East, which have already disrupted crude flows and increased logistics costs. Although refinery shutdowns are routine, the current environment of tight crude supply and elevated global prices may amplify the impact, potentially supporting lifting petcoke prices further. However, Nayara is expected to maintain adequate product buffers, which may limit any immediate supply disruption in the market.
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