There is no good news for Petcoke users in Delhi/NCR as the Supreme Country has refused to lift its ban on the usage of the fuel in the region. After the apex court banning usage of the fuel with effect from 1Nov’17, industry bodies had petitioned the court for reviewing its ban in view of the fact that the ban will result in many factories facing closure. But, their petition to the Supreme Court had fallen on deaf ears.
As a consequence of the ban in place, demand for the fuel has moderated; and many users have switched to USA coal. Demand for USA origin coal has thus strengthened significantly.
On the pricing front, offers for Petcoke from USA have moved further up due to the strong global demand; while, the offers from Saudi Arabia traversed downwards due to the global demand shifting towards USA.
The latest offers for Petcoke (6.5% Sulphur) from USA is assessed at around USD 106/MT CFR India, which is up by around USD 2/MT over the week-ago offers. The recent offers from Saudi Arabia (9% Suphur) are assessed lower by around USD 4/MT, at around USD 98/MT CFR India, against the offers in the week last.
In India, the domestic refineries have kept their ex-works prices unchanged, despite moderation of demand and increasing global supply.
Reliance Industries Limited (RIL), the largest Petcoke producer in India, has quoted its ex-works price at INR 8,100/MT, and Essar, the second largest producer has quoted its ex-works price at INR 8,090/MT.
Interestingly, Mangalore Refinery and Petrochemicals Limited (MRPL), with effect from 1Nov’17, has raised its ex-works price by INR 590/MT to INR 6,950/MT. Apparently, it could be understood that MRPL has hiked its price to capitalize upon the demand prevailing in the western and southern regions of the country, which are beyond the periphery of the Supreme Court ban.
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