India’s pet coke consumption has fallen by 39% in the last five years to 15.8 mnt in FY’22, while the same stood at 25.6 mnt in FY’18. Consumption decreased over the years amid increased usage of thermal coal by the cement sector, especially since late 2020 and also due to the pandemic that hampered demand from the cement sector.
The highest consumption of pet coke was seen in FY’18 as its domestic availability increased due to the commissioning of DCUs (Delayed Coker Units) at existing refineries, which increased pet coke production.
Imports of pet coke were freely allowed into India after 2017. However, consumption was impacted in FY’19 due to a ban on imports.
After several representations by various industry groups, some relaxations by the Indian government were given for allowing pet coke imports to be used in cement, carbide, gasification and lime kilns, etc. with certain restrictions in late 2018.
In FY 2020-2021, the pandemic and subsequent restrictions in industrial and construction activities impacted domestic pet coke consumption. However, the situation improved marginally in 2021-2022.
Imports rise in 2022
India’s pet coke imports have grown exponentially by 105% to 6.78 mnt in January-September this year against the same period last year.
Indian cement manufacturers that were using high-CV Australian thermal coal since the past one-and-a-half years – because of its competitive rates – are back to booking pet coke especially after the Russian-Ukraine crisis.
The conflict between the two nations has pushed thermal coal prices to an all-time high. Western countries’ sanctions on Russia have increased demand for alternative Australian high-CV coal from European nations, driving up coal costs. This made Indian cement customers switch back to pet coke buying.
Imported pet coke prices into India have corrected by 27% since March. Current prices of Saudi-origin material (9% sulphur) is assessed at $189/tonne (t) while US-origin (6.5% sulphur) pet coke is assessed at $194/t CFR India.
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