Indian Petcoke Prices Go Up by INR 300/MT

As predicted by CoalMint the week last, Petcoke prices have again gone up in India.

Reliance Industries Limited (RIL), the largest Petcoke producer in India, has hiked its ex-works price by INR 300/MT to INR 6,550/MT with effect from 1 Oct’16. Essar, the second largest producer in the country, also has raised its ex-works price for the material by the same amount to INR 6,540/MT, effective from the same date.

Source: Market Participants

The upward price revisions seem to have been done on account of the supply tightness prevailing in the international markets, and prevalence of strong domestic demand.

In the meantime, some Petcoke consumers were heard to have opted for using Thermal Coal due to the abundant domestic supply.

In a remarkable note, Mangalore Refinery and Petrochemicals Limited (MRPL) has hiked its ex-works price for Petcoke by INR 523/MT to INR 6,164/MT for customers outside the Karnataka state; and for customers within the state, MRPL has priced the material at INR 6,089/MT (ex-works), raising by the same amount.

INTERNATIONAL SHORTAGE CONTINUES TO PERSIST

There has been no correction in the tight supply situation in the key international markets, and therefore the import offers have continued to remain high, unmoved from the rates prevailed the week last.

The latest import offer of Petcoke (9%Sulphur) from Saudi Arabia is at around USD 86/MT CFR India; while, that of the material (6.5% Sulphur) from USA is at around USD 90/MT CFR India.

The material is also not available for immediate shipment.

IMPORTS

Imports, booked earlier, have continued to land at Indian ports. Data compiled by CoalMint Research shows that 1.43 MnT was imported into the country during the 1-28 Sep’16 period.