Petcoke purchases have increased in India as the material has become unavailable in key international markets.
MARKET TREND
Prevalence of severe shortage in the key international markets due to supply disruption has resulted in import offers going up significantly.
According to a reputed importer, import offers of Petcoke (6.5% Sulphur) from USA have gone up to around USD 71/MT CFR India. Also, import offers of the material (9%Sulphur) from Saudi Arabia also have gone upto USD 70-71/MT CFR India, according to the importer. There is now no difference between import offers from the key regions.
Moreover, the material is also not available for immediate shipment in the regions, so imports booked against these offers will be shipped in Aug’16.
Purchases in the country have gone stronger due to unavailability of the material in overseas markets. Buyers in the country are thus constrained to procure from domestic suppliers. Also, domestic supply was better to cater to the increased purchases, as learnt from communicating with some traders.
In the meantime, Indian producers have maintained their ex-works prices at the rates revised on 1 Jun’16.
It may be recalled that on 1Jun’16, Reliance Industries Limited, the largest producer in the country, had revised its ex-works price by INR 300/MT to INR 4,950/MT; and, Essar, the country’s second largest producer, also had hiked its ex-works price by the same amount to INR 4,940/MT.
Source: Market Participants
IMPORTS
During the 1-6 Jun’16 period, 214,200 MT of Petcoke was imported into the country, according to data compiled by SteelMint Research. The importers were: Shree Cement, Ramco Cement, Dalmia Cement, Adhunik Cement, SteelMint Research also shows.
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