Domestic Petcoke producers in India have retained their ex-work prices as revised on 1July’16 despite severe shortage prevailing in the key international markets.
ACUTE SHORTAGE CONTINUES TO PREVAIL IN SAUDI ARABIA AND USA
Severe shortage continued to prevail in the key international markets of Saudi Arabia and USA. Petcoke production has declined in the regions, and also, refineries in the regions were using their Petcoke production to generate captive power.
Import offers from these regions have sky-rocketed. The prevailing import offers from Saudi Arabia and USA have gone up to around USD 80-81/MT CFR India respectively. Also, suppliers in the regions were unable to supply the material immediately due to unavailability.
INDIAN EX-WORKS PRICES UNCHANGED
In the domestic market in India, demand has somewhat shinked due to the ongoing rainy season. Unavailability in the key international markets has led buyers to procure from the home market.
It may be recalled that on 1July’16, Reliance Industries Limited, the largest producer in the country, had raised its ex-works price by INR 650/MT to INR 5,600/MT; and Essar, the second largest producer in the country, also had hiked its ex-works price by the same amount to INR 5,590/MT.
Source: Market Participants
PRODUCTION INCREASES IN JUN’16
Petcoke production in the country in Jun’16 was 10.70% higher, at 1,065 TMT, than that in May’16. The production in Jun’16 was also the highest in the country in FY17.
In the first quarter of the current fiscal, 3,006 TMT of Petcoke was produced in the country.
Source: Industry
IMPORTS
Imports, booked earlier, have landed at Indian ports. During 1-21July’16, 850,276 MT of Petcoke imports entered into the country from international markets, according to data compiled by SteelMint Research.
The top importers were: Shree Cement, Ultratech Cement, Adani Enterprise, Ramco Cement, Zuari Cement, among others.
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