Indian Petcoke Producers Revise Prices Downwards on International Cues

Petcoke prices in India have come down, being influenced by the sinking international offers.

Incidentally, there was no disruption in the Petcoke market in the country on account of implementation of the GST, which was set at 18%, higher by 2% over the erstwhile tax at 16%. There was also no retardation in the purchases, despite the higher tax passed on to the customers.

Of late, the international offers have shrunk to some extent. The latest offer for Petcoke(6.5% Sulphur) is assessed lower by around USD 2/MT, at USD 92/MT CFR India ( than the week-ago rate). The fresh offer for Petcoke (9% Sulphur) from Saudi Arabia is assessed at USD 90/MT CFR India, lower by around USD 2/MT than that assessed the week last.

Source: CoalMint Research

Responding to the downslides in the international offers, Indian Petcoke producers have reduced their ex-works prices.

Reliance Industries Limited (RIL), the largest Petcoke producer in the country, has lowered its ex-works price by INR 250/MT to INR 7,000/MT. Essar, the second largest producer in India, has revised downwards its ex-works price by INR 255/MT to INR 6,990/MT.

Source: CoalMint Research

In a contrasting mode, Mangalore Refinery and Petrochemicals Limited (MRPL) has raised its ex-works price by INR 371/MT to INR 6,610/MT, seemingly due to the prevailing strong demand in the country.

On the consumption side, there has been strong demand prevailing in the country.

PRODUCTION

In May’17, Petcoke production in the country was 8.31% higher than that in Apr’17, according to the data sourced by CoalMint Research. During the month under review, Petcoke production in India was at 1,147 ‘000MT, which was higher than the production of 1,059 ‘000MT in Apr’17.

Source: CoalMint Research

On a year-on-year comparison, the Petcoke production in May’17 in the country exceeded the production of 962 ‘000MT in May’16 by 19.23%.

IMPORTS

Petcoke imports have entered into the country uninterruptedly as consumption was strong. During the 1-29Juny’17 period, around 0.72 MnT of Petcoke was imported into the country, data collected by CoalMint Research shows.