Petcoke Offers Rise on Stronger International Demand

The Petcoke market in India has remained more or less at the same state as that the week last. Strong demand continued to prevail as user-industries procured the fuel uninterruptedly.

OFFERS MOVE UP

Petcoke offers from the key international markets have gone up as international demand was stronger . Offers for Petcoke(6.5% Sulphur) from USA have gone up by around USD 4/MT to USD 100-104/MT CFR India. Offers for Petcoke (9% Sulphur) from Saudi Arabia have moved up by around USD 8/MT to USD 96-98/MT CFR India.

Source: CoalMint Research

The upward traversal by the offers is the outcome of the recent imports by China, creating more demand in those export markets.

DOMESTIC PRICES STAY UNMOVED

Petcoke producers in India have incorporated no change in their ex-works prices. Reliance Industries Limited, the largest producer in the country, has quoted its ex-works price at INR 7,150/MT; while, price quote of Essar, the country’s second largest producer, at INR 7,145/MT.

Mangalore Refinery and Petrochemicals Limited (MRPL) has quoted its ex-works price at INR 6,180/MT, for customers outside the Karnataka state; and for customers within the state, the price is quoted at INR 6,080/MT.

Source: CoalMint Research

Demand is significantly strong in the country as the user-industries is procuring the fuel constantly. Traders, spoken to by CoalMint, said that demand from not only the cement industry but also other user-industries was considerably strong.

Amid the market environment with strong demand, the refinery of HPCL-Mittal Energy Limited continues to be in the shut-down state. According to a market participant, the refinery is likely to resume operations by the third week of Jun’17.

Demand for Petcoke will continue to remain strong as the cement plants are running in full-swing, necessitating constant Petcoke purchases.

IMPORTS

Petcoke imports have somewhat shrunk as buyers preferred procuring domestically. According to the data compiled by CoalMint Research, 483,480 MT of Petcoke was imported into India during the 1-19May’17 period.