Petcoke prices in India—both domestic and import offers—are stable at the week-ago rates.
CLOSING FISCAL RESTRICTS PURCHASES
Traders, spoken to by CoalMint, attributed the stability in the prices to contraction of demand in the country that aroused due to buyers abstaining from purchasing as their financial accounts were closing at the terminal days of the current fiscal. The traders expected purchases to pick with the onset of Apr’17—the new fiscal.
IMPORT OFFERS STAGNATE W-o-W
The latest import offer for Petcoke (6.5% Sulphur) from USA is assessed stable at USD 100/MT CFR India. Import offer for Petcoke (9% Sulphur) from Saudi Arabia is also assessed at the week-ago rate of USD 95/MT CFR India.
Source: CoalMint Research
DOMESTIC PRICES UNDERGO NO CHANGE
The laxity in demand gave no reason to the Indian producers to revise their ex-works prices. Domestic prices are unmoved at the last revised rates.
Reliance Industries Limited (RIL), the largest producer in the country, has retained its ex-works price at INR 6,350/MT; and Essar, the second largest producer, kept its price unchanged at INR 6,340/MT.
Source: CoalMint Research
Mangalore Refinery and Petrochemicals Limited (MRPL) also has kept its prices stable. For buyers outside the Karnataka state, MRPL has quoted its Petcoke price at INR 5,794/MT (ex-works); and for buyers within the state, the price is quoted at INR 5,694/MT(ex-works).
PRODUCTION DIPS M-o-M
Petcoke production in India dipped by around 9% in Feb’17 month-on-month. In Feb’17, the cumulative production by the domestic refineries was at 993 ‘000MT, which was lower than the production of 1,092 ‘000MT in Jan’17.
Source: CoalMint Research
During the first 11 months of FY17, 11,756 ‘000MT of Petcoke was produced in India.
According to a statistical predictive model, developed by CoalMint Research, Petcoke production in the country in the last month of FY17 could be expected to be at around 1,080 ‘000MT.
IMPORTS
User-industries, mostly cement producers, continued to import Petcoke. Usage of Petcoke by cement makers will continue despite a ban on its usage being considered, initially in the Delhi/NCR , by the Government of India, as the ban will exclude cement producers.
According to data compiled by CoalMint Research, around 0.6 MnT of Petcoke was imported into India during the 1-23 Mar’17 period.
Source: CoalMint Research
During FY17, 13.62 MnT of Petcoke was imported into India (upto 23Mar’17), according to CoalMint Research.
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