Indian Petcoke Prices Stagnate; Imports Dip 3% Y-o-Y

Petcoke offers from international markets as well as domestic prices in India have remained at the week-ago rates.

MODERATE DEMAND PREVAILS

Demand for Petcoke has turned to moderate levels from strong levels as the prime consumer segment—the cement producers—have started blending coal with Petcoke in the production of cement. The cement producers’ affinity for coal seems to have arisen from the availability of abundant coal domestically.

OFFERS REMAINS UNCHANGED

There has been no change in the offers from the key international markets from the rates assessed the week last. The latest offer for Petcoke (6.5% Sulphur) from USA is reported unchanged at USD 98-100/MT CFR India. In a similar trend, the recent offer for Petcoke(9% Sulphur) from Saudi Arabia is also reported stable at USD 90-92/MT CFR India.

Source: CoalMint Research

INDIAN PRICES STABLE

Indian producers have retained their ex-works prices at the rates revised on 1Apr’17. The moderate demand pattern prevailing in the country seems to give no reason to the domestic producers for revising prices.

The current ex-works price of Reliance Industries Limited (RIL), the largest producer in the country, is at INR 6,700/MT. The prevailing ex-works price of Essar, the country’s second largest producer, is atINR 6,690/MT.

Source: CoalMint Research

Mangalore Refinery and Petrochemicals Limited (MRPL) has quoted its ex-works price at INR 5,910/MT for customers outside the Karnataka state; and for buyers outside the state, the price is quoted at INR 5,810/MT.

PRODUCTION

Petcoke production in India increased 16.72% in Mar’17 in comparison with the production in Feb’17, according to CoalMint Research. In Mar’17, 1,159 ‘000MT of Petcoke was produced in the country against the production of 993 ‘000MT in the previous month.

Source: CoalMint Research

During FY17, Petcoke production in the country was at 12,915 ‘000MT, which was lower by around 3% over the production of 13,319 ‘000MT in FY16.

IMPORTS

Petcoke imports continue to come into India. During the 1-17Apr’17 period, around 0.6 MT of Petcoke had landed at Indian ports, data compiled by CoalMint Research shows.