By now in this month, Petcoke users might be wondering as to which direction—upward or downward—the prices will move with the beginning of the next month. Although many market participants were unclear of the direction of movement, the recent discounts offered by the domestic producers somewhat indicate that the prices are likely to be revised downwards.
There has been no correction in the supply state-of-affairs in the key international markets. Supply has remained tight, keeping import offers at highs.
The latest import offer of Petcoke (6.5% Sulphur) from USA is learnt to be at around USD 104/MT CFR India; while, that of the material (9% Sulphur) from Saudi Arabia at around USD 92/MT CFR India.
Reliance Industries Limited (RIL), the largest Petcoke producer in India, has shut-down a unit in its Jamnagar refinery for maintenance after a fire out break incident on Thursday last. All other units of the refinery continue to operate normally, ruling out any shortage in supply on account of the incident.
It may be recalled that, on 1Nov’16, RIL had decreased its ex-works price by INR 200/MT to INR 6,350/MT. Essar, the country’s second largest producers also had reduced its ex-works price by the same amount to INR 6,340/MT. Incidentally, these were the first downward revisions in the price in 2016.
Source: Market Participants
Analyzing the possible direction of price revision next, it could be reasonable to conclude that the prices are likely to be revised downwards. The discounts offered by the domestic producers to buyers could be regarded as a potential indication. The discounts were offered seemingly due to some buyers resuming using coal partially.
IMPORTS
Imports continue to land at the Indian ports as demand for the material is strong. During the 1-25 Nov’16 period, 1.04 MnT of Petcoke was imported into the country, data compiled by CoalMint Research shows.
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