The Petcoke ban in India is going to result in escalation in coal imports in the country. According to the estimates, the ban will impact nearly 2 MnT of consumption of Petcoke in the country.
In replacing the petroleum based fuel, user industries will have to import coal as the domestic coal in India is mostly being directed towards the thermal power plants.
Some coal traders, spoken to by CoalMint, said that they saw symptoms of coal imports going up in the near future due to the Petcoke ban.
Petcoke is used by a wide array of industries, such as cement, textile, brick, lime, chemical, plastic, among others. These industries situated within the Delhi/NCR, Uttar Pradesh and Rajasthan regions will have to switch over to coal.
As a matter of fact, coal produced in USA is a potential replacement for Petcoke. The USA coal bears calorific value of around 7,200 GAR; whereas, that for Petcoke lies at around 7,600 GAR. Offers for USA coal have already risen to around USD 99/MT CFR India.
Leave a Reply