The major Indian Petcoke producers have rolled over their ex-works prices, retaining the prices as revised on 1 Nov’16. However, market participants had last week speculated a downward revision in the prices on the basis of the discounts offered by the major producers.
The prevailing ex-works price of Reliance Industries Limited(RIL), the largest producer in the country, is at INR 6,350/MT; and that of Essar, the country’s second largest producer, at INR 6,340/MT.
Source: Market Participants
The seemingly underlying reason for the country’s producers refraining from lowering their ex-works prices could be the import offers remaining at high rates.
Supply tightness has continued to persist in the key international markets, restricting any significant downward movement in import offers.
The latest import offer of Petcoke (6.5% Sulphur) from USA was assessed at around USD 102/MT CFR India; and that of the material (9% Sulphur) from Saudi Arabia at around USD 90/MT CFR India.
In an exception, Mangalore Refinery and Petrochemicals Limited (MRPL) has raised its ex-works price for Petcoke by INR 331/MT to INR 6,244/MT, with effect from 1Dec’16, for buyers outside the Karnataka state. And, for buyers within the state, MRPL has increased the ex-works price by INR 156/MT to INR 6,144/MT. MRPL has increased its prices apparently to bring these close to that of RIL.
Demand has remained strong in the country, and robust domestic purchases have prevailed due to shortages in the key international markets and high import offers. A few user-industries have started partially replacing Petcoke with coal due to costlier import offers—something also prompting the domestic producers to offer discounts.
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