In a remarkable shift in price trend, Petcoke prices in India have drifted downwards, incidentally, for the first time in 2016.
With effect from 1Nov’16, Reliance Industries Limited (RIL), the largest producer in the country, has decreased its ex-works price by INR 200/MT to INR 6,350/MT. Likewise, Essar, the country’s second largest producer, also has reduced its ex-works price by the same amount to INR 6,340/MT.
Source: Market Participants
The downward revisions in the prices could be attributed to the slight improvement in the import availability; although strong demand prevailed, and import offers were at high rates.
Import offers have continued to remain at high rates. According to the latest assessment, import offers of Petcoke (6.5% Sulphur) from USA are at around USD 102/MT CFR India; and that of the material (9% Sulphur) from Saudi Arabia are at around USD 90/MT CFR India.
Mangalore Refinery and Petrochemicals Limited (MRPL) also has revised downwards its ex-works price by INR 251/MT to INR 5,913/MT, customers outside the Karnataka state. MRPL has also lowered its ex-works price by INR 101/MT to INR 5,988/MT, for buyers within the state.
PRODUCTION
Prevalence of strong demand and supply shortage in the key international markets, Indian producers have been producing the material in high quantities.
In Sep’16, 1,071 ‘000MT of Petcoke was produced in India; and that was marginally higher than the production in Aug’16.
Source: Industry
During the Apr-Sep’16 period, 6,246.21 ‘000MT of Petcoke was produced in the country.
Besides, the Government of India has recently revised the customs exchange rate for imports to INR 67.60 per USD.
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