The Petcoke market in India has come under the influence of raising the import duty to 10%.
Imports of Petcoke have dwindled remarkably after the duty was raised. Given the current import scenario, the imports in Jan’18 could be expected to get lower by more than 50% over the imports in Dec’17. According to the data collected by CoalMint Research, only around 0.4 MnT of Petcoke was imported in India during 1-24Jan’18 , whereas, the import volume was remarkably higher in Dec’17 at around 1.05 MnT.
“Demand for Petcoke is quite strong, and domestic purchases are robust,” commented a trader in a communication with CoalMint. His comment also summarizes the prevailing market scenario. Moreover, the trader did not foresee any further upward price revisions by the Indian refineries, because there had been no further rise in the international offers.
Demand for domestic Petcoke has been strong in the Indian market as the buyers preferred the domestic material over imports, as procuring from international markets became costlier due to the imposition of the higher duty.
In Dec’17, Petcoke production in India was at around 1.24 MnT, which was higher by 5.6% over the imports in Nov’17. The production in Dec’17 also had surpassed the production of around 1.17 MnT in Dec’16 by 5.6%.
Source: CoalMint Research
Statistically speaking, the average month-on-month demand for Petcoke in India has been growing at around 1% during the current fiscal.
In this week, neither the international offers nor the domestic prices of Petcoke underwent any change on week-on-week basis.
Offers for Petcoke (6.5% Sulphur) from USA have remained at around USD 108-109/MT CFR India. And the last known offer for Petcoke (9% Sulphur) from Saudi Arabia was at around USD 96/MT CFR India. Sellers in Saudi Arabia have not yet announced their latest offers in view of the squeeze in the consumption in India.
Source: CoalMint Research
In the home market, Reliance Industries Limited, the largest producer in India, had quoted its ex-works price at INR 8,000/MT; and Essar, the country’s second largest producer, has quoted its ex-works price at INR 7,985/MT.
Source: CoalMint Research
Mangalore Refinery and Petrochemicals Limited has set its ex-works price at INR 6,950/MT.
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