MARKET TREND
The Petcoke market in India has remained unchanged during the last seven days, with stronger demand prevailing and the prices remaining at high rates.
Domestic Petcoke purchases have become stronger in India as supplies were tight in the key international markets—USA and Saudi Arabia. In USA, several refineries are in the maintenance shut-down condition that has been lowering supplies to international markets. At the same time, international demand has also been stronger, compounding to the supply tightness in the key international markets. According to market participants, the allotted Petcoke exports upto Apr’18 from the two international markets has already been booked by importers, indicating the international supply tightness to continue in the coming days.
In India, Petcoke users have continued to use the fuel despite prevalence of high prices. All segments of users were using the fuel without any tendency for using alternate fuels.
Consumption of Petcoke is going to increase further in India as demand for cement, the largest Petcoke consuming segment, will grow by around 4.5% in the next fiscal, according to the estimates in place.
PRICE TREND
As a consequence of the supply tightness in the key international markets and stronger demand, international offers for Petcoke are at high rates.
Offers for Petcoke (6.5% Sulphur) from USA were reported at around USD 113/MT CFR India, unchanged from the week-ago rates. And offers for Petcoke (9% Sulphur) from Saudi Arabia were reported at around USD 102/MT CFR India, which were unmoved from the rates in the week last.
Source: CoalMint Research
Responding to the international market conditions, Indian refineries have kept their ex-works prices at high rates. With the onset of the current month, Reliance Industries Limited (RIL), the largest Petcoke producer in India; and Essar, the country’s second largest producer, had raised their ex-works prices by INR 600/MT respectively. Mangalore Refinery and Petrochemicals Limited (MRPL) had hiked its ex-works price by INR 440/MT on 1 Mar’18.
Source: CoalMint Research
The prevailing ex-works prices of the major Indian refineries are: INR 8,950/MT (RIL), INR 8,935/MT (Essar) and INR 7,310/MT(MRPL).
In view of the tightness in the international supply, there is no prospect for any downturn in the prices at least within this month.
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