Indian-delivered prices for seaborne petroleum coke have increased further amid persistent firm demand outlook from cement manufacturers.
Indian imports of petroleum coke have also increased by 6.5% month-on-month to 705,712 t in September from 662,402 t in August. India’s domestically-produced pet coke prices have also firmed consistently up over the past few months, following a steady resurgence in end-user demand from cement manufacturing companies.
The current average price of US-origin pet coke (6.5% sulphur) is assessed at around US$ 96-97 per tonne (t) on CNF India basis, compared with US$ 92-93/t in the last fortnight. This indicates an increase of US$ 3/t over the past two-week period.
Offers for Saudi-origin pet coke (9% sulphur) are presently hovering in the range of US$ 92-93/t CNF India, as against the earlier price of around US$ 87-88/t. This indicates an increase of US$ 5/t in last two weeks.
The USGC FOB price of pet coke (6% sulphur) – widely accepted as reference across international markets – has increased by US$ 5/t to US$ 61-62/t, over the price of US$ 56-57/t prevailing in the last fortnight.
Average shipping freight rates from USGC to Indian ports for Supramax vessel (50,000-55,000 tons deadweight (DWT)) are currently assessed at US$ 37.50/t.
The increasing price trend for pet coke is being observed from July onwards and is continuing in this month also. The firmness of price has more to do with the reduction in supply than increase in demand. Supply is restricted globally due to the pandemic, which has caused lesser demand of middle distillates like diesel and aviation fuel forcing the refineries to cut the crude and operate at lower capacities. If this trend continues in the international market, CNF India prices may surpass $100/t.
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