Towards which direction will Petcoke prices in India will move tomorrow is clearly a pertinent topic of discussion, especially during a time when the market is ruled by low demand with ample domestic supply.
Looking at the key international markets—USA and Saudi Arabia, suppliers there are seeing lower demand for Petcoke as Indian cement makers have reduced imports. The suppliers have reduced the import offers in response to the low demand.
In view of the low demand for cement in the country, cement makers operated plants at lower rates. Dipping construction activity in the country as a fallout of demonetization has significantly eroded demand for cement.
The ruling import offer for Petcoke (6.5% Sulphur) from USA is reported lower at USD 99-100/MT CFR India; and that for the material (9% Sulphur) from Saudi Arabia at USD 89-90/MT CFR India.
Source: CoalMint Research
There has been no price revision by Indian producers during this month; and they retained their ex-works prices at the rates revised on 1Nov’16.
The current prices in India are: INR 6,350/MT (Reliance Industries Limited) and INR 6,340/MT (Essar).
Source: CoalMint Research
Notably, prevalence of low demand in the country and the dip in import offers are indicative of the prospect of producers in the country revising their prices downwards. Moreover, Reliance Industries Limited offering discounts to push up sales in the low demand environment also could be regarded as a potential indicator of the likelihood of the company reducing its ex-works price tomorrow.
IMPORTS
As cement plants have ran at low rates, imports also were lower. During the 1-27Jan’17 period, 0.5 MnT of Petcoke had landed at Indian ports, according to CoalMint Research.
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