Indian Petcoke Prices Go Up by INR 150/MT on Higher Import Offers, Robust Demand

In line with prediction by CoalMint in the week last, Petcoke prices in India have gone up on account of higher import offers and strong demand.

DOMESTIC PRODUCERS RAISE EX-WORKS PRICES

Domestic producers have again hiked their ex-works prices to maintain parity with higher import offers, and also in response to the robust demand prevailing in the country.

With effect from 1 Sep’16, Reliance Industries Limited, the largest producer in the country, has raised its ex-works price by INR 150/MT to INR 6,250/MT; alongside, Essar, the second largest producer in the country, also has hiked its ex-works price by the same amount to INR 6,240/MT.

Source: Market Participants

SHORTAGE IN INTERNATIONAL MARKETS PERSISTS

Supply in the key international markets has become extremely tight, with the material being unavailable for immediate shipment. Market participants, spoken to by CoalMint, in the context of the prevailing supply situation in the key international regions of Saudi Arabia and US, said that there was no availability of the material, and hence, no import offers.

ROBUST DEMAND PREVAILS IN INDIA

In India, demand for Petcoke has been strong as the cement companies have been using the material as the main fuel. Consumption from the other sectors, like textile and boiler, is also remarkably strong.

IMPORTS

Import consignments, which were booked earlier, have continued to land at Indian ports. During Aug’16, 1.87 MnT of Petcoke had entered into the country, according to SteelMint Research. In Aug’15, the import volume was lower at 0.96 MnT, SteelMint Research shows.