The global Petcoke offers have gone up further, being consequences of the tightness in supply which ensued aftermath of the Harvey hurricane, which had occurred in Texas of USA on 25Aug’17. Most of the refineries in USA have suspended operations during the recovery from the devastation caused by the hurricane; resulting in cut-off of Petcoke exports. Thereafter, the global demand had shifted towards Saudi Arabia, and as a result of which, Petcoke supplies from the Middle Eastern country also had dried up.
Exports from both USA and Saudi Arabia are expected to resume from Nov’17. And, the corresponding global offers are being quoted at significantly higher rates. Besides, there is no material available in both the international markets for Oct’17 loading.
For Nov’17 loading, offers for Petcoke(6.5% Sulphur) from USA are assessed at around USD 108/MT CFR India; and offers of Petcoke (9% Sulphur) from Saudi Arabia are assessed at around USD 100.MT CFR India.
Source: CoalMint Research
Given the tight international supply state, and the user industries running at high rates, demand for Petcoke in India is reasonably strong.
Indian producers have hiked their ex-works prices remarkably in order to capitalize upon the strong demand.
Reliance Industries Limited (RIL) has hiked its ex-works price by INR 950/MT to INR 8,100/MT, and Essar, the second largest producer also has raised its ex-works price by INR 935/MT to INR 8,090/MT.
Source: CoalMint Research
Mangalore Refinery and Petrochemicals Limited (MRPL) has also revised its ex-works price upwards by INR 170/MT to INR 6,360/MT.
On the production front, Petcoke production in India had slipped by 3.27% to 1,124 ‘000MT in Aug’17 over the production of 1,162 ‘000MT in Jul’17. On a year-on-year comparison, the production during the month under consideration was up by 5.5% over the production of 1,065 ‘000MT in Aug’16.
Source: CoalMint Research
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