India’s import demand by cement manufacturing companies is gradually increasing following some more relaxations provided by the government for allowing construction and infrastructure works. These factors are expected to increase the production of the cement industry, which is the major end consumer sector for pet coke.
On the supply side, refineries are also ramping up their production levels by increasing crude throughput. Thus, both supply and demand side of pet coke is expected to increase gradually. However, it may take few more months to reach at normal levels.
Accordingly, pet coke import prices have firmed up over the past one-month period. The current average price of US-origin pet coke (6.5% sulfur) is assessed at around US$ 63 per tonne (t) CNF India, as compared to the last week’s price of around US$ 61.6/t. This indicates an increase of US$ 1.4/t over last week’s price level.
Saudi-origin pet coke (9% sulfur) is presently being offered in the range of US$ 60-61/t CNF India, as against US$ 59-60/t in the last week. This indicates an increase of US$ 1/t over last week’s price level.
The US Gulf Coast (USGC) FOB price of pet coke (6% sulfur), which is generally used as reference in international market, has reduced to US$ 33/t in this month. This reflects a decrease by US$ 1/t over the FOB price of US$ 34/t prevailing in the last month.
The ocean freight from USGC to Indian Ports for Supramax vessel (50,000-55,000 tons deadweight (DWT)) has marginally increased to approximately US$ 25/t over last month’s freight rate of US$ 24-25/t.
Reported by Aditya Sinha
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