- Stable export supply and freight keep prices supported
- Seasonal weakness in cement demand limits fresh buying interest
India’s imported fuel-grade petroleum coke (petcoke) market remained broadly stable during the week ended 31 July, with prices holding within a narrow range as balanced global supply offset subdued buying from Indian cement manufacturers. Trading activity remained moderate, with most buyers restricting purchases to immediate requirements while awaiting stronger post-monsoon demand.
Although overseas availability remained comfortable and freight rates showed little movement, market participants reported limited liquidity as buyers resisted higher offers and deferred discretionary purchases. With inventories considered adequate across much of the cement sector, procurement continued on a hand-to-mouth basis, keeping the market balanced rather than bullish.
Cement sector keeps buyers disciplined
The Indian cement industry continues to dictate sentiment in the imported petcoke market. Seasonal rainfall has moderated construction activity across several regions, reducing clinker production and limiting near-term fuel requirements. As a result, most cement producers have continued to procure cargoes only against confirmed production schedules rather than building inventory.
This measured approach reflects a broader shift in procurement strategy. Buyers are increasingly managing imports around plant utilisation, inventory positions and operating margins rather than reacting to short-term price movements. Consequently, negotiations during the week remained prolonged, with buyers seeking greater commercial flexibility while sellers largely maintained firm offers.
Stable supply leaves demand in the driver’s seat
Unlike previous periods when refinery outages or freight disruptions shaped market direction, current conditions are characterised by comfortable export availability and predictable logistics.
Freight on the US Gulf Coast–India route has remained broadly unchanged over recent weeks, while export supply has been sufficient to meet prevailing demand.
With supply-side risks limited, downstream consumption has become the primary market driver. In the absence of stronger cement demand, there has been little impetus for buyers to accelerate purchases despite the relative stability in landed costs.
Market awaits post-monsoon recovery
Market participants expect buying interest to improve as construction activity gathers pace after the monsoon. India’s medium-term cement demand outlook remains supported by infrastructure spending, housing construction and continuing capacity additions, all of which should underpin fuel consumption during the second half of the financial year.
For now, however, consumers appear comfortable maintaining existing inventory levels while monitoring demand recovery. Unless cement dispatches strengthen materially over the coming weeks, imported petcoke prices are likely to remain within their recent trading range
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