Petcoke users in India should now brace themselves up for spending more in purchasing the fuel from the next month as the domestic refineries in the country are expected to raise their ex-works prices with the onset of Oct’17.
Given the supply tightness in the key international markets and the strong demand prevailing in India, Petcoke producers are most likely to hike their ex-works prices with effect from 1Oct’17.
After the devastation caused by the Harvey hurricane, which had occurred at Texas in the US on 25 Aug’17, several refineries in the US have suspended operations, cutting off Petcoke exports. In Saudi Arabia, supplies have almost finished as the global demand shifted towards the Middle Eastern country due to the supply disruption in the US.
According to the latest information received, there is no availability of Petcoke in both the international markets for Oct’17 loading. And, for Nov’17 loading, the offers have escalated to significant levels.
Interacting with a reputed importer, it was learnt that offers for Petcoke (6.5% Sulphur) from USA for loading in Nov’17 have gone up to around USD 104/MT CFR India; and offers for Petcoke(9% Sulphur) from Saudi Arabia also have risen to around USD 99/MT CFR India for loading in Nov’17.
In the meantime, strong demand is prevailing in India as the user-industries are operating at high rates, and there is no international supply available. Traders, spoken to by CoalMint, said that buyers from all segments of user-industries were purchasing the fuel fervently. When asked about the future price trend, he replied that the domestic prices are expected to go up with the beginning of Oct’17.
Reliance Industries Limited, the largest producer in India, has quoted its ex-works price at INR 7,150/MT; while, Essar, the second largest producer, has quoted its ex-works price at INR 7,155/MT. And, Mangalore Refinery and Petrochemicals Limited (MRPL) has quoted its ex-works price at INR 6,190/MT.
Source: CoalMint Research
IMPORTS
During the 1-20Sep’17 period, around 0.5 MnT of Petcoke was imported in India, data compiled by CoalMint Research shows.
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