MARKET TREND
Strong trading activities are going on in the Petcoke market in India despite the prevalence of high prices. Active usage of the refinery by-product by almost all segments of end-users, including the cement, textile and others, has resulted in the strong demand; and indications are rife that there will be no loosening of the demand in the coming days.
The purchases were done not only to cater to the daily production needs but also for stocking. End-users have preferred stocking the fuel as the prices are expected to go up further in the days to come.
Petcoke supplies have been without any constraint as the domestic refineries were releasing the supplies uninterruptedly.
During FY18, the average monthly demand for Petcoke has been growing at around 1% in the country.
Source: CoalMint Research
PRICE TREND
International offers have gone up significantly on account of the stronger demand emanating from China. Also, Indian buyers have resumed booking active imports, compounding to the stronger demand in the key international markets. As a matter of fact, China is the largest Petcoke consuming nation in the world, while India is the second largest in Asia.
In parallel with the prevalence of strong international demand, supplies in USA have become tighter as several refineries there are off-line due to maintenance shut-down. The refineries are expected to resume commercial operations by Apr’18.
As the consequence of strong demand prevailing in the key international markets amid tighter supply, the offers have exhibited a rising trend.
Offers for Petcoke (6.5% Sulphur) from USA, for loading in Mar’18, have moved up to around USD 118/MT CFR India, up by around USD 12/MT over the week-ago offers. And, offers for Petcoke (9% Sulphur),for Mar’18 loading, from Saudi Arabia have gone up to around USD 108/MT CFR India, which are higher by around USD 10/MT over the offers quoted in the week last.
Source: CoalMint Research
The tighter supply in USA has prompted the sellers in Saudi Arabia to raise their offers. USA and Saudi Arabia are the two key international Petcoke(Fuel Grade) export markets.
In India, speculations of the domestic refineries revising their ex-works prices are rife among the market participants in view of the escalating international offers. Some traders and buyers, spoken to, expressed their expectation of the Indian refineries lifting their ex-works prices with the onset of Mar’18. They also ruled out any shrinkage in the domestic demand due to the expected upswing in the prices.
Domestic prices in India are already at high rates, after the INR 350/MT hike implemented by the major refineries in the country with effect from 1Feb’18. There was no price revision during the intervening period.
The prevailing ex-works prices in India are at: INR 8,350/MT (Reliance Industries Limited), INR 8,335/MT (Essar) and INR 6,870/MT (Mangalore Refinery and Petrochemicals Limited).
Source: CoalMint Research
IMPORTS
During the 1-14 Feb’18 period, around 221,300 MT of Petcoke was imported in India, according to the data collected by CoalMint Research. The imports will increase as many cement companies in India were heard to have booked substantial import consignments.
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