In line with the speculations, Petcoke prices in India have risen abruptly, mainly driven by the severe supply constraints in the key international regions.
With effect from 1Oct’17, Reliance Industries Limited (RIL), the largest producer in India, has hiked its ex-works price by INR 950/MT to INR 8,100/MT. As a matter of fact, RIL’s prices are the benchmarks in India.
The steep upward price revision was the outcome of the prevalence of severe supply tightness in the key international markets.
There is no supply of Petcoke from USA and Saudi Arabia for Oct’17 loading. In USA, several refineries have suspended operations in recovering from the devastations caused by the Harvey hurricane, which had occurred at Texas in the US on 25Aug’17. Supply of Petcoke has been cut-off as a result. In Saudi Arabia, supplies have exhausted due to the strong global demand, which had shifted towards the Middle Eastern country due to the supply disruption in the US. Supplies from the two international markets are expected to resume in Nov’17.
Offers for Petcoke from the two key international markets have moved up significantly for Nov’17 loadings.
Offers for Petcoke (6.5% Sulphur) from USA for loading in Nov’17 have gone up to around USD 104/MT CFR India; and offers for Petcoke(9% Sulphur) from Saudi Arabia also have risen to around USD 99/MT CFR India for loading in Nov’17.
Source : CoalMint Research
In India, domestic purchases have become remarkably stronger, apparently due to the supply disruption in the international markets. The strong demand for Petcoke in the country has arisen as a result of the user-industries running at high rates.
IMPORTS
During the 1-20 Sep’17 period, around 0.58 MnT of Petcoke had landed at Indian ports, according to the data compiled by CoalMint Research.
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