Indications of Petcoke prices going down in the near future have begun showing. With the gradual resumption of operations of the petroleum refineries, which underwent maintenance shutdown, in USA; offers have started falling as supplies are expected to slowly go up. And, the expectations are rife that the offers will decline further.
The speculated decline in the offers also corresponds to the fact that the prices in India too are poised for a downfall as the Indian refineries set their ex-works prices on the basis of import price parity—which means, the refineries in India revise their prices in accordance to the rise and fall in the prices in the key international markets, mainly in the US market.
The latest offers for Petcoke (6.5% Sulphur) from USA are assessed down at around USD 113/MT CFR India, which are lower by around USD 5/MT over the week-ago offers. At the same time, the recent offers for Petcoke(9% Sulphur) from Saudi Arabia are assessed at around USD 110/MT CFR India, down by around USD 2/MT against the offers in the week last.
Source: CoalMint Research
In India, the demand has remained strong on account of the active purchases by the user-industries. As there has been supply tightness in the key international markets, the Indian buyers were forced to procure from the home market.
The prevailing domestic Petcoke prices in India are: INR 8,950/MT(Reliance Industries Limited), INR 8,935/MT (Essar) and INR 7,860/MT (Mangalore Refinery and Petrochemicals Limited).
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