Indian Oil Corporation Ltd’s (IOCL’s) Paradip Refinery has gone for shutdown from the first week of August, 2022. It is expected that the refinery will restart by 7-10, September, 2022.
As this was a planned shutdown, it led to lifting of more pet coke by buyers in July. The total sales of pet coke during the month reached an all-time high at 156,000 tonnes (t), registering a 56% rise against a monthly average sale of 100,000 t.
Dalmia Cement-Rourkela, ACC-Sambalpur, ACC-Jamul and Orissa Metaliks-West Bengal were the key buyers of IOCL’s pet coke last month.
At present, Paradip Refinery has stocks of around 40,000 t, which will meet its customers’ requirements till it resumes operations.
IOCL is the largest pet coke supplier in India. Its Paradip Refinery is its 11th, started in 2016, with 15 mtpa capacity and has been set up at an estimated investment of INR 34,555 crore.
IOCL’s pet coke prices for August
In terms of prices, after touching their highs in April this year, IOCL has been cutting pet coke prices since the last three months. For August, the company has cut prices by INR 1,400/t in case of its Koyali Refinery, while its Paradip Refinery prices were reduced by 3,970/t to INR 18,000/t and INR 17,800/t for road and rake mode supply respectively.
The price cut has been in line with the fall in imported thermal and pet coke prices. Imported pet coke prices from Saudi and the US are currently assessed at $174-175/t CFR India basis. During monsoons, demand for pet coke from the cement sector takes a backseat due to slackness in construction activities, thus negatively impacting pet coke prices.
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