- Wide gap emerges between US offers, Indian bids
- Recent uptick in Chinese demand may not sustain
Imported pet coke prices in India weakened by $1/tonne (t) w-o-w, with BigMint assessing US-origin material at $117-118/t CFR and Saudi-origin at $115-116/t CFR.
A recent, short-lived price rally in the US petroleum coke market, fuelled by short-term Chinese demand, has met firm resistance from price-sensitive Indian buyers, leading to a market stand-off.
In the week ending 14 November, Chinese buyers entered the US Gulf Coast market, acquiring multiple cargoes at levels between $125-132/t CFR China. The sudden $10-18/t price jump in US pet coke, caused by a short burst of Chinese buying, lasting less than a week, was reportedly driven by concerns over the lower availability of Russian crude and its impact on domestic Chinese pet coke production. Market intermediaries were quick to signal this as a major bullish shift.
However, evidence suggests this demand is niche-focused, primarily for mid-sulphur coke, and may not be sustainable. More importantly, major Indian consumers, particularly in the cement sector, have demonstrated a lack of buying interest at these elevated levels. Key Indian players have confirmed their fuel requirements are secured until January or even March 2026, granting them the flexibility to defer purchases. Consequently, the sharp price rise has moderated, primarily because Indian demand has not followed the Chinese way.
The prevailing view among Indian cement manufacturers is that the Chinese buying interest is temporary and that US high-sulphur pet coke prices will correct downward. With Indian entities unwilling to transact above approximately $109-113/t CFR, a significant bid-offer gap has emerged. This market stalemate underscores the power of strategic inventory management and fuel-switching capability in blunting temporary price spikes, forcing sellers to reconsider their pricing strategies for the Indian market.
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