Pet Coke Domestic Prices Reduced for Fourth Consecutive Month

Reliance Industries Ltd. (RIL) has decreased petroleum coke price for this month by INR 200/MT to INR 7,600/MT with effect from 1 Jun’19, over its previous price of INR 7,800/MT, which was applicable from 1 May’19.

Notably from Mar’19 onwards, RIL had reduced its pet coke price by over Rs 1500/MT, in different stages of subsequent revisions.

Similarly, Nayara Energy (erstwhile Essar Oil) has also revised its pet coke price w.e.f. 1 Jun’19 to INR 7,590/MT, a decrease of INR 200/MT against its last price of INR 7,790/MT.

Mangalore Refinery & Petrochemicals Ltd. (MRPL) has maintained pet coke price w.e.f. 1 Jun’19 at INR 8,130/MT for road supplies which was applicable for the month of May’19.

MRPL’s price for rake/barge supplies has been also maintained at INR 7,830/MT.

Price Commentaries

RIL – India’s largest pet coke producer – has reduced price for the fourth consecutive month, totaling INR 1,550/MT since March’19.

This is mainly influenced by the gradual softening of pet coke prices in the international market coupled with reduction in global prices of imported steam coal.

It is further understood that RIL has also booked import of pet coke for its gasification plant and thus have more product to offer in the market. The estimated quantity on domestic offer by RIL is to the tune of 300-350 TMT (Thousand Metric Tons) in this month, which is comparatively higher by about 100 TMT than the previous months.

Nayara Energy typically follows the RIL pricing and generally maintains a difference of INR 10/MT with respect to the RIL price. Hence, its price decrease is by the same amount of INR 200/MT as RIL.

MRPL has maintained the price difference of INR 300/MT between its road supplies and rake/barge supplies, which is the estimated expenditure incurred by the customers to shift the product from the refinery for rake/barge loading.

Indian Oil Corporation (IOCL), the second largest producer of pet coke, is yet to revise its prices from various refineries. It is expected that IOC may also follow the trend of price reduction set by RIL, in its forthcoming price revisions.