Imported prices of pet coke continued to firm up as global thermal coal prices remained elevated amid supply constraints at key exporting countries.
Prices of US-origin pet coke with 6% sulphur is assessed at $174-175/t as against $169-170/t, CNF India last week.
The latest CNF India prices for Saudi-origin pet coke with 8.5% sulphur have also risen to $155-156/t, up $4-5/t w-o-w.
The increase in pet coke prices continue to keep the gap between Saudi coke and US coke at $19/t, largely unchanged from last week. The gap is likely to reduce further to a more reasonable range within 10% of US pet coke prices.
Sea freight from USA to India for a Supramax vessel (50,000-55,000 tonnes) is assessed at $55/t.
Global thermal coal prices add pressure
Despite the Indonesian government lifting the coal export ban last month, the tight coal supply situation continues to keep prices from this country higher.
Indonesian miners have been prioritising fulfilling old contracts and offering Mar’22 booking at a premium of $2-3/t over the index prices.
South African coal prices, on the other hand, also remain strong with limited stock at RBCT for exports and rising demand from Europe amidst its gas supply shortage.
The sharp rise in thermal coal prices has forced pet coke refineries to raise their prices as this fuel is used by cement manufacturers as an alternative.
Indian players follow suit
Major refiners in India such as Reliance Industries Limited (RIL), Nyara Energy, and Indian Oil Corporation have already raised their domestic pet coke prices by over INR 500/t for Feb’22.
Others, including Bharat Petroleum Corporation Limited (BPCL) and Mangalore Refinery Petrochemicals Ltd are also likely to follow the trend considering their logistics and marketing conditions at various refineries.
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