Indian Petcoke Prices Likely to Go Up Further on International Cues

The next Petcoke price revision in India is also likely to be upwards; as indicated by the ruling price trend in the key international markets.

IMPORT OFFERS RISE FURTHER

Import offers from the key international markets have further moved up on severe supply tightness. According to a reputed importer, 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. These offers are higher than that assessed the week last.

M-o-M DOMESTIC PRODUCTION DIPS

Petcoke production in India in Aug’16 had dipped by around 3.5% to 1,065 ‘000MT, compared with the previous month. The downward drift in the production during the month arouse despite prevalence of strong demand and supply tightness in the key international markets. During the first five months of FY17, 5,175 ‘000MT of Petcoke was produced in the country, according to information gathered from reliable sources in the industry.

Source: Industry

DOMESTIC PRICES STAY STEADY

In the meantime, there was no change in the domestic prices in the country. On 1Sep1’6, Reliance Industries Limited (RIL) and Essar had revised their ex-works prices upwards to INR 6,250/MT and INR 6,240/MT respectively. RIL and Essar are the largest and the second largest producers in the country.

Source: Market Participants 

Mangalore Refinery and Petrochemicals Limited (MRPL) also has kept its ex-works price unchanged. MRPL has priced its Petcoke at INR 5,641/MT(ex-works) for customers outside the Karnataka state; for customers within the state, the ex-works price is lower at INR 5,566/MT.

STRONG DEMAND CONTINUES

Demand for Petcoke has continued to be strong in India. Consumption of the material by not only the cement, but also by other segments, like textile, dye and plastics have been active, leading to constant purchases in the market.

Although the domestic producers have been releasing the material regularly, some interruptions of domestic supply were also heard of.

IMPORTS

Imports have continued to land at Indian ports. According to the latest data compiled by CoalMint Research, around 1.18 MnT of Petcoke had landed at various ports in the country during the 1-22 Se’16 period.