MARKET TREND
The state of affairs in the Petcoke market—Indian as well as international—has not changed during the last seven days. High prices but strong demand continued to rule, and there is almost no prospect of the market becoming quiet in the near future.
There will be no retardation in the Petcoke purchases in India as the end-users are not likely to switch over to coal as their predominant fuel. All segments of end-users were learnt to be buying the refinery-derived fuel vigorously.
Consumption of Petcoke will increase further in India, the second largest consuming nation in Asia after China. According to expert opinions, demand for cement, the largest Petcoke consuming segment, will grow by 4-5% in FY19—to impart further momentum to Petcoke consumption in India.
PRICE TREND
In response to the export offers prevailing at high rates in the key international markets, Indian refineries have revised their ex-works prices significantly upwards. As a matter of fact, Indian refineries set their ex-works prices on the basis of import price parity. In simple words, the country’s refineries move their ex-works prices in sync with the international prices.
With effect from 1Mar’18, Reliance Industries Limited, the largest Petcoke producer in India, has hiked its ex-works price by INR 600/MT to INR 8,950/MT; while, Essar, the second largest producer in the country, also has lifted its ex-works price by the same amount to INR 8,935/MT.
Source: CoalMint Research
Following its peers, Mangalore Refinery and Petrochemicals Limited (MRPL) has raised its ex-works price by INR 440/MT to INR 7,310/MT.
Offers from the key international markets—USA and Saudi Arabia—have remained at high rates due to the prevalence of strong international demand. However, there were some moderations in the offers in comparison with those in the week last.
Offers for Petcoke (6.5% Sulphur) from USA were quoted at around USD 113/MT CFR India, down by around USD 3/MT over the week-ago offers. And offers for Petcoke (9% Sulphur) from Saudi Arabia were quoted at around USD 102/MT CFR India, lower by around USD 8/MT against the offers in the preceding week.
Source: CoalMint Research
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