Reliance Industries Ltd. (RIL) has decreased petroleum coke price with effect from 1st May’20 to INR 5,892/MT, over its last month’s price of INR 7,115/MT, which’s a substantial decrease of INR 1,223/MT.
Nayara Energy (erstwhile Essar Oil) has also decreased pet coke price to INR 5,890/MT, over its last month’s price of INR 7,120/MT, a decrease of INR 1,230/MT.
Indian Oil Corporation Ltd. (IOCL), the country’s second-largest pet coke producer, is yet to revise prices from its various refineries.
Mangalore Refinery & Petrochemicals Ltd. (MRPL) has rolled over its pet coke price for road supplies in May’20 at INR 6,490/MT, which’s the same as in last month.
Similarly, MRPL has also maintained its price of pet coke for supply by rake/barge at INR 6,190/MT, same as in last month.
Price Commentaries
This is a drastic price cut after RIL’s consecutive price increases over the last three months, starting from Feb’20. Such enormous decrease can be primarily attributed to reduction in international prices which in turn is due to the slowdown in global demand caused by the ongoing corona virus (Covid-19) pandemic across the world.
Meanwhile, Indian demand for pet coke has perceptibly faded away following the enforcement of the nationwide lockdown effective from March 25, and subsequently extended until May 3 and now further on till May 17.
In spite of certain exemptions granted by the Indian government for specified industries with appropriate protocols, only few cement plants have started production activities, albeit with much lower capacity utilization rates.
The price of Nayara Energy continues to be in tune with RIL price and is within variations of INR 10/MT with respect to RIL.
MRPL has maintained the price difference of INR 300/MT between its road supplies and rake/barge supplies, which is the approximate expenditure incurred by a customer for shifting the material from refinery to rake/barge loading area.
Leave a Reply