The Petcoke market in India is sustaining strong demand following the supply tightness ensued in the USA market following the Harvey hurricane, which had occurred at Texas in the US on 25 Aug’17.
According to the information received, suppliers in the US have delayed their shipments by 4 to 5 weeks due to the hindrances caused by the hurricane.
Buyers in India have thus procured their Petcoke requirements from the home market, intensifying the domestic demand.
Commenting on the demand situation in India, a reputed trader told CoalMint, ”Demand for Petcoke in India has become robust as imports are not arriving at the ports due to the aftermath of the recent hurricane incident in the US.”
Taking advantage of the supply tightness in the US, Saudi Arabian suppliers have raised their offers to around those from the US.
On a week-on-week comparison, offers for Petcoke (9% Sulphur) from Saudi Arabia have gone up by around USD 2/MT to around USD 95/MT CFR India; while offers for Petcoke(6.5% Sulphur) from USA have remained steady at around USD 96/MT CFR India.
In Saudi Arabia, a fire outbreak incident occurred recently at one of the 400,000 barrels per day refinery of Yanbu Aramco Sinopec Refining Company, also known as Yasref, which is among the major Petcoke suppliers to India. The incident, however, had no negative impact on the operations of the company.
In India, the domestic ex-works prices have remained unchanged from the week-ago rates, after the producers raised the prices on 1 Sep’17.
Reliance Industries Limited, the largest producer in India, has quoted its ex-works price at INR 7,150/MT; while, Essar, the second largest producer, has quoted its ex-works price at INR 7,155/MT. And, Mangalore Refinery and Petrochemicals Limited (MRPL) has quoted its ex-works price at INR 6,190/MT.
Petcoke supply in India is expected to increase as MRPL is likely to resume operations of its refinery, which is currently under maintenance shut-down, within this week.
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