Import offers for petroleum coke remained elevated this week, as strength in global thermal coal markets continues to provide support, against a background of rising freight rates.
However, Indian market has remained very quiet, following a deadline issued by the country’s apex court for a government decision to be taken on or before 30 Jun’18, regarding the proposed ban of petroleum coke imports as well as domestic consumption.
Meanwhile last week, the Government of the National Capital Territory of Delhi has issued the much awaited notification mandating only a limited number of ‘cleaner’ fuels for use within the capital city, and bordering states of Haryana, Rajasthan, and Uttar Pradesh.
According to the notification, only Bharat Stage VI compliant petrol and diesel with 10 ppm sulphur, CNG, LPG, biogas, aviation fuel, energy from waste, charcoal for limited use in tandoors and ironing of clothes, and wood for cremations are allowed.
More importantly, this new notification has barred the use of all pollution causing fuels including pet coke, furnace oil, tyre oil etc, in a bid to curb toxic emissions.
All existing industrial units, commercial establishments and other users of such dirty fuels have been granted a period of 90 days to switch over to any of the approved alternatives like piped natural gas, electricity or BS-VI diesel.
It is worth mentioning that the Indian Supreme Court had earlier banned use of pet coke in industrial units from 1 Nov’17. Though the restriction was relaxed later, it was followed by an import duty hike on petcoke from 2.5% to 10%.
On the pricing front, latest offers for pet coke (6.5% sulphur) from the United States Gulf coast (USGC) are around USD 117-118/MT CNF India, but no deals have concluded this week.
Higher sulphur (9%) Saudi Arabia pet coke is assessed in a range of USD 109-112/MT CNF India.
Freight costs are about USD 35/MT indicating an USGC FOB price of USD 82-83/MT, according to traders.
Source: CoalMint Research
In India, Reliance Industries Limited (RIL), the country’s largest pet coke producer having approximately 40% share, has hiked its price by INR 150/MT to INR 9,600/MT, with effect from 1 Jul’18.
Mangalore Refinery and Petrochemicals Limited (MRPL), a subsidiary of ONGC and Schedule “A” Mini Ratna Company, has also raised its price by INR 260/MT to INR 8,540/MT effective 1 Jul’18.
N.B.:
i. The above prices are effective 1 Jul’18.
ii. These prices are exclusive of GST @18%.
iii. The MRPL price is for pet coke transported by rake/barge.
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