Petcoke offers have risen in response to the stronger demand from Indian cement makers.
OFFERS GO UP ON STRONGER DEMAND
In response to the strengthening demand from cement producers in India, suppliers in the key international markets have raised their offers.
The latest offer for Petcoke (6.5% Sulphur) from USA is reported higher by around USD 2-3/MT at USD 99-100/MT CFR India. In a similar trend, the recent offer for Petcoke(9% Sulphur) from Saudi Arabia is also reported at around USD 91-92/MT CFR India, up by USD 2-3/MT over the rate assessed the previous week.
Source: CoalMint Research
Shortage of the domestic material is also prevailing in the country as the domestic producers released their supplies inconsistently, according to some traders spoken to by CoalMint.
INDIAN PRODUCERS RETAIN PRICES
There was no price revision by domestic producers in India. Traders, spoken to by CoalMint, said that demand was strong from all the consuming segments; and consumption by the cement sector was stronger.
The current ex-works price of Reliance Industries Limited (RIL), the largest producer in the country, is at INR 6,700/MT. The prevailing ex-works price of Essar, the country’s second largest producer, is at INR 6,690/MT.
Source: CoalMint Research
IMPORTS
Petcoke imports have continued to enter into India due to stronger demand. During the 1-23Mar’17 period, around 0.63 MnT of Petcoke was imported into the country, data collected by CoalMint Research shows.
Delving into the past reveals that around 13.85 MnT of Petcoke was imported into the country in FY17, and that was higher by 130.8% over the imports of around 6 MnT in FY16.
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