Petcoke prices in India have declined as domestic supply increased substantially.
It was during the recent flood in Gujarat, supplies from the Jamnagar refinery of the largest Petcoke producer—Reliance Industries Limited (RIL)– were completely cut-off, resulting in a build-up of a massive pile of Petcoke inventory at the refinery. After the flood was over, RIL lowered the price to boost up sales in the domestic market in a bid to liquidate the inventory.
With effect from 1 Aug’17, RIL has revised its Petcoke ex-works price downwards by INR 150/MT to INR 6,850/MT. And, Essar, the country’s second largest producer, also has reduced its ex-works price by INR 145/MT to INR 6,845/MT with effect from the date.
Source: CoalMint Research
Mangalore Refinery and Petrochemicals Limited (MRPL) has decreased its ex-works price by INR 420/MT to INR 6,190/MT, effective from the onset of this month.
In the domestic market of the country, demand is on a full-swing. Many buyers also were learnt to prefer domestic Petcoke due to availability and lower prices.
Consumption of Petcoke will rise further in India as the cement industry is on a growing path. Experts predict that demand for cement is growing at 5% in 2017.
In the meantime, international Petcoke offers have stagnated at the last known rates. The latest offer for Petcoke (6.5% Sulphur) from USA is assessed unchanged at around USD 86/MT CFR India; while, the recent offer for Petcoke (9% Sulphur) from Saudi Arabia is also assessed steady at around USD 83/MT CFR India.
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