Indian Petcoke producers have hiked their ex-works prices by INR 500/MT w.e.f today, seemingly due to import offers going up significantly.
SKY-ROCKETING IMPORT OFFERS IMPACT INDIAN PETCOKE PRICES
Petcoke prices have gone up in India as domestic producers hiked their ex-works prices to maintain the import price parity.
Effective from 1Aug’16, Reliance Industries Limited, the largest producer in the country, has hiked its ex-works price by INR 500/MT to INR 6,100/MT. Following the price hike, Essar, the second largest producer in the country, also has hiked its ex-works price by the same amount to INR 6,090/MT.
Source: Market Participants
The price hikes seem to have been done on account of the significant rise in import offers in the key international markets due to acute unavailability.
According to a reputed importer, import offers from both Saudi Arabia and USA are at around USD 82-83/MT CFR India respectively. There is now no difference in the import offers from both the key regions. Besides, the material is also not available for immediate loading.
Market participants, spoken to by SteelMint, said that they were uncertain on when the supply situation in the key international markets will improve.
CEMENT MANUFACTURERS CONTINUE USING PETCOKE DESPITE HIGH PRICES
Cement manufacturers, the prime consumers of Petcoke, continued using the material, without replacing with Thermal coal,despite rise in the prices as supply was adequate from the domestic suppliers.
Some traders revealed to SteelMint that strong demand prevailed in the domestic market despite the ongoing rainy season.
IMPORTS
Imports, booked earlier, have landed at Indian ports. During 1-21July’16, 850,276 MT of Petcoke imports entered into the country from international markets, according to data compiled by SteelMint Research.
The top importers were: Shree Cement, Ultratech Cement, Adani Enterprise, Ramco Cement, Zuari Cement, among others.
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