Petroleum coke import prices have further firmed up in this month from their existing levels.
The market participants have indicated that the current average price of US-origin pet coke (6.5% sulphur) is in the range of USD 75-76/MT CNF India, as compared to USD 71-72/MT in the last month. This indicates an increase of approximately USD 4/MT over last month’s price level.
Saudi-origin pet coke (9% sulphur) is at present being offered in the range of USD 72-73/MT CNF India, against USD 69-70/MT of last month. This also indicates an increase of aroundd 4/MT over last month’s price level.
The price difference between the 6.5% sulphur and 9% sulphur pet coke has remained narrow and is only USD 3/MT, thus indicating increased gap in low and high sulphur prices.
The U.S. Gulf Coast (USGC) FOB price of pet coke (6% sulphur), which is generally used as reference in international market, is to the tune of USD 34/MT. This reflects an increase of USD 4/MT over last month’s FOB price of USD 30/MT.
The ocean freight from USGC to Indian Ports for Supramax vessel (50,000-55,000 MT) has marginally decreased to USD 37-38/MT over last month’s freight of USD 38-39/MT. There has been a nominal decrease of nearly USD 1/MT, in ocean freight.
This decrease is said to be due to restriction in seaborne trade to China due to spread of the novel Corona virus epidemic.
Thus, with an increase in FOB price by USD 4/MT and coupled with marginal reduction in ocean freight by about USD 1/MT, the increase in CNF India price is by USD 3-4/MT.
This price increase in the international import market as well as increase in demand by cement industries may support further increase in domestic price in coming month. We will have to wait and watch till the next revision takes place by major domestic players.
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