Reliance Industries Ltd. (RIL) has increased its petroleum coke price ex-Jamnagar refinery with effect from 1st Jul’20 to INR 6,750/t, over its last month’s price of INR 5,697/t, an increase of INR 1,053/t.
Nayara Energy (erstwhile Essar Oil) has also increased pet coke price to INR 6,755/t, over its last month’s price of INR 5,705/t, an increase of INR 1,050/t. The price of Nayara Energy continues to be in tune with RIL price and remains within a variation of INR 10/t with respect to RIL.
Indian Oil Corporation Ltd. (IOC), the country’s second-largest pet coke producer, is yet to revise pet coke prices from its various refineries.
Price Commentaries
This sharp increase in pet coke price by RIL is in line with the international price levels and follows two consecutive price reductions in the months of May and June 2020. RIL’s price reduction in May’20 has been substantial over INR 1,200/t, while in Jun’20 it was a moderate reduction of approximately INR 200/t.
Amidst the gradual resumption of infrastructural activities post lockdown, India’s domestic demand for cement is picking up, which in turn is the major driving force for pet coke as it is mostly used in cement kilns. Pet coke demand has increased gradually after certain relaxations have been provided during the recent months.
Many cement plants have already scaled up production levels over 50% of their capacities and are further ramping up. However, it may take some more time to reach the demand prevailing before the ongoing Covid-19 outbreak.
By Aditya Sinha
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