Driven by the twin impacts of supply tightness in the key international region, and the robust domestic demand; Petcoke producers in India have raised their ex-works prices.
In USA, the recent Harvey hurricane is estimated to have put off-line around 2.5 -3 million barrel/ day of refining capacity at Texas, thus tightening supply of Petcoke to international markets. It was estimated that around 500,000 MnT of Petcoke production could be lost as a result. Several Petcoke suppliers in the US have already announced delaying their shipments to their customers due to the supply hassles.
In a communication with a reputed market participant, it was learnt that there was no offer for immediate loading from the US.
However, there was no change in the offers quoted by international suppliers for the Sep’17 last loadings. Offers for Petcoke (6.5% Sulphur) from USA are quoted at around USD 96/MT CFR India; and offers for Petcoke (9% Sulphur) are quoted at around USD 93/MT CFR India.
In India, demand for Petcoke is at high levels as all segments of user-industries have procured the material on a continuous basis.
Responding to the stronger domestic demand and tight international supply, Indian Petcoke producers have raised their ex-works prices with effect from 1 Sep’17.
Reliance Industries Limited, the largest producer in India, has hiked its ex-works price by INR 300/MT to INR 7,150/MT; while, Essar, the second largest producer, has lifted its ex-works price by INR 310/MT to INR 7,155/MT.
Source: CoalMint Research
However, Mangalore Refinery and Petrochemicals Limited (MRPL) has retained its ex-works price at INR 6,190/MT.
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