With Reliance Industries Ltd (RIL) increasing the prices of its pet coke for Feb’22, the company’s price disparity with other refineries has widened by INR 262-5,010/t.
RIL had raised its pet coke prices this month to INR 14,522/t, up by INR 538/t m-o-m in line with the rise in thermal coal prices which is used by cement manufacturers as an alternative to pet coke.
RIL’s pet coke prices are considered as a reference point by most suppliers and buyers as it is the largest producer in the country, enjoying almost 50% of the production volume. However, as it has started consuming a major portion of its production in its gasification units, it has been offering much lesser quantity in the domestic market.
A m-o-m summary of price variations with RIL:
Paradip, and Haldia showed the highest variation compared to RIL’s prices this month.
The highest decline, of INR 5,010/t, was seen at Bharat Petroleum Corporation Limited’s (BPCL’s) Kochi refinery, followed by INR 3,170/t at Bina refinery. This indicates that BPCL’s prices at both Kochi and Bina were not in sync with other major pet coke producers this month.
The wide variation in prices compared to RIL’s compelled several oil companies, including BPCL, to reduce their heavy discounts in Feb’22 as against what was offered during Jan’22, market participants informed.
Outlook
CoalMint believes, domestic pet coke prices are likely to rise further amid resilient thermal coal prices. Where demand is concerned, it continues to remain strong with the government’s focus on construction.
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