India’s Domestic Pet Coke Prices Reduced; Import Offers Unchanged

Reliance Industries Limited (RIL) has revised its petroleum coke price to INR 8,550/MT with effect from 1 Dec’18, which is a reduction of INR 800/MT over its previous price of INR 9,350/MT (as from 1 Nov’18).

Similarly, Nayara Energy (erstwhile Essar Oil) has also reduced pet coke price w.e.f. 1 Dec’18 to INR 8,540/MT, which is lower by INR 800/MT as compared to its Nov’18 price of INR 9,340/MT.

Mangalore Refinery & Petrochemicals Ltd. (MRPL) has revised pet coke price w.e.f. 1 Dec’18 to INR 7,880/MT for road supplies against its Nov’18 price of INR 8,580/MT. Price for rake /barge supplies is INR 7,580/MT against its Nov’18 price of INR 8,280/MT. Thus, there is reduction of INR 700/MT over MRPL’s last prices in Nov’18.

Price Commentaries

The price reduction by RIL, India’s largest producer of pet coke which contributes over 45% of domestic production, is reflective of the reduction in the international market over the month, coupled with strengthening of the Indian Rupee against the US Dollar. While the reduction in CNF price of pet coke over the month has been to the tune of USD 7-8/MT, the USD has depreciated by approx. 4 against INR.

Notably, the pet coke price has reduced in consecutive two months i.e. in Nov’18 by INR 300/MT and now in Dec’18 by INR 800/MT. Thus, a price reduction of INR 1,100/MT in last two months has made pet coke attractive as compared to high CV US Coal, which is the major competitive fuel, used in place of pet coke, mainly by cement industries.

Nayara Energy typically follows the RIL price and generally maintains a difference of INR 10/MT with respect to RIL. Thus, the price reduction is by the same amount of INR 800/MT.

MRPL price for rake/barge supplies is lower by INR 300/MT than road supplies, which is the estimated expenditure incurred by the customers to shift the product from refinery for rake/barge loading.

IOCL, the second largest producer of pet coke, is yet to revise its price from various refineries. It is expected that forthcoming price revision by IOCL may also reflect the price reduction by RIL.