Imported prices of US-origin pet coke rose by $3/tonne (t) w-o-w basis on the back of increasing imported thermal coal prices, especially from USA and Australia.
The price for US-origin pet coke with 6% sulphur is assessed at $169-170/t as against $166-167/t, CNF India basis while the latest CNF India price for Saudi-origin pet coke with 8.5% sulphur is assessed at $151-152/t as against $149-150/t in the previous week.
The increase in pet coke prices has further reduced the gap of Saudi Coke and US Coke to $19/t, which was at $24/t last week. The gap is likely to reduce further to a more reasonable range within 10% of US pet coke price.
The sea freight from USA to India for a supramax vessel (50000-55000 MT) is assessed at $57/t.
Pet coke prices fall from historic highs
Over the last two months, US-origin pet coke prices have declined sharply from the historic highs of $260/t in Oct’21.
On a m-o-m basis, US pet coke prices with 6.5% sulphur were assessed at $120-121/t, down by $20/t, FOB basis. This price is used as an index by majority of importers across the world for long-term contracts.
The decline in prices was in line with the fall in thermal coal prices in Dec’21 which is used an alternative by the cement manufacturers.
However, with the recent rise in thermal coal prices following ban on coal exports from Indonesia for Jan’22 and supply issues in South Africa and Australia, Indian cement industries have largely shifted towards using pet coke.
India’s pet coke imports reached to the tune of 1 mnt in Dec’21, up by 77% m-o-m due to its competitive prices with thermal coal, CoalMint data showed.
Indian players likely to raise prices
Major refiners are expected to raise their offers for Feb’22, as per market sources.
RIL and Nayara may increase prices in the range of INR 600-800/t, while other oil companies may also follow the trend considering their logistics and marketing conditions at various refineries.
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