Sufficient domestic supply in the Indian market has shielded buyers in the country from the impact of unavailability prevailing in the key international markets.
Assessing the demand and supply scenario in the country, it could be inferred that domestic producers in the country are less likely to revise their prices in the near future as adequate supply is available vis-à-vis the demand prevailing. Moreover, there is also a likelihood of demand in the country going lower in the coming days due to onset of the monsoon season.
In contrast, acute unavailability is prevailing in the key international markets. According to a reputed importer, import offers from Saudi Arabia and USA have gone up significantly, and difference in offers from the two regions also has narrowed to bring the offers close to each other. The importer said that import offers of Petcoke (6.5% Sulphur) from USA are at around USD 72/MT CFR India; and that of the material (9% Sulphur) from Saudi Arabia are at around USD 70/MT CFR India. Materials booked against these offers are not available for immediate shipping.
It may be recalled that on 1Jun’16, Reliance Industries Limited, the largest producer in the country, had revised its ex-works price by INR 300/MT to INR 4,950/MT; and, Essar, the country’s second largest producers also had hiked its ex-works price by the same amount to INR 4,940/MT.
Domestic producers have kept their ex-works prices unchanged since then.
Source: Market Participants
PRODUCTION
In India, Petcoke production was lower by around 1.7% in May’16 than that in Apr’16, according to a reliable source. In May’16, 962 TMT of Petcoke was produced in the country.
Source: Industry
IMPORTS
During the 1-20Jun’16 period, 824,600 MT of Petcoke was imported into the country, according to data compiled by SteelMint Research. It is to be noted that the import consignments pertain to earlier bookings. The top importers during the period were: Dalmia Cement, Zuari Cement, Shri Cement, Ramco Cement, among others.
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