Indian Petcoke Production, Global Offers Jump on Stronger Demand

The Petcoke market in India is under bullish sentiments, arising out of the strong demand prevailing in the country.

In the recent past, demand for the fuel has not only strengthened in India but also across other countries in the world. Global imports of Petcoke have thus increased, causing the international offers to follow an upward path.

GLOBAL OFFERS TRAVERSE NORTHWARDS

In the latest assessment, offers for Petcoke (6.5% Sulphur) have gone up by around USD 6/MT, over the offers in the week last, to around USD 96/MT CFR India. Exhibiting a similar trend, offers for Petcoke (9% Sulphur) from Saudi Arabia is also were up by around USD 8/MT to around USD 93/MT CFR India over the week-ago offers, the assessment shows.

Source: CoalMint Research

STRONG DEMAND PREVAILS IN INDIA

In India, demand is substantially strong, with all segments of Petcoke users are in buying spree. Buyers are also learnt to prefer the domestic market as supply is abundant, and prices are lower.

However, there was no price revision by any of the refineries in India. The domestic ex-works prices correspond to that revised last (on 1Aug’17).

The country’s largest producer, Reliance Industries Limited (RIL), has quoted its ex-works price at INR 6,850/MT. And, Essar, the country’s second largest producer, has fixed its ex-works price at INR 6,845/MT.

Mangalore Refinery and Petrochemicals Limited (MRPL) has quoted its ex-works at INR 6,190/MT.

PRODUCTION GOES UP IN INDIA

Petcoke production in India was on a higher note, apparently due to the active consumption in the country.

During July’17, the cumulative Petcoke production by the refineries in the country was up by 2.56% over the production in the previous month.

The total production in July’17 in the country was at 1,162 ‘000MT, which had surpassed the production of 1,133 ‘000MT in Jun’16.

Source: CoalMint Research

On a year-on-year comparison, the production in July’17 also overtook the production of 1,104 ‘000MT in July’16 by 5.27%.

Given the strong demand in place, the production by the country’s refineries could be expected to remain at highs in the next month.

IMPORTS

Petcoke imports in India were substantial due to the strong consumption. According to the data compiled by CoalMint Research, around 0.96 MnT of Petcoke was imported in India during the 1-16 Aug’17 period.