IndianOil announces sudden reduction in pet coke prices

Indian Oil Corporation Ltd. (IOC), the country’s second-largest petroleum coke producer, has decreased prices from its various refineries with effect from 28^th Nov’20.

• IOC has revised pet coke price at Koyali refinery for road supplies to INR 8,940/t over its last month’s price of INR 9,600/t — a decrease of INR 660/t.

• Price for rake loading has been also decreased by INR 660/t to INR 8,740/t from INR 9,400/t in the last month.

• Pet coke price at Panipat refinery for general states has been revised to INR 9,850/t over its last month’s price of INR 10,210/t — a decrease of INR 360/t.

• Pet coke price for Punjab, Haryana, Jammu and Kashmir and Chandigarh has been revised to INR 10,050/t from INR 10,410/t — a decrease of INR 360/t over last month’s price.

• Pet coke price at Paradip refinery for road supplies has been revised to INR 7,640/t over its last month’s price of INR 9,100/t — a decrease of INR 1,460/t.

• Price for rake supply has been revised to INR 7,340/t from INR 8,800/t — a decrease of INR 1,460/t over last month’s price.

• Pet coke price ex-Haldia refinery for road supplies has been revised to INR 7,810/t over its last month’s price of INR 9,270/t — a decrease of INR 1,460/t.

• The price applicable for rake supplies has been also decreased by INR 1,460/t to INR 7,510/t from INR 8,970/t in the last month.

Price Commentaries

Notably, this was an unscheduled and unexpected price revision made by IOC before 1st of December. The last price revision of IOC was effective from 6th Nov’20. This price reduction ranges from being moderate to high across different refineries. The lowest reduction is at Panipat by INR 360/t, Koyali by INR 660/t and at both Paradip and Haldia refineries by a high amount of INR 1,460/MT.

It is understood that major reason for such a move was high idle stocks of pet coke particularly at Paradip where the storage is very limited as compared to Koyali and Panipat.

It may be noted that the price of pet coke has firmed in last one month in the international market. Accordingly, market participants were expecting some increase by at least INR 100-200/t in December price.

At Panipat, the abovementioned price for northern states is higher by INR 200/t in this month which was same in the last month.

While the price for rake supplies is lower than road supplies at Koyali by INR 200/t, at Paradip and Haldia rake prices continue to be lower by INR 300/t.