The speculation of Petcoke prices going down in India due to prevalence of low demand eventually did not totally materialize. Major Indian producers instead preferred rolling over their ex-works prices.
Reliance Industries Limited (RIL), the largest producer in the country, retained its ex-works price at INR 6,350/MT; and Essar, the second largest producer, kept its price unchanged at INR 6,340/MT.
Source: CoalMint Research
Interestingly, RIL also has withdrawn the discount of INR 300/MT it offered; and traders attributed the termination of discount to demand gradually strengthening in the non-cement sectors, like textiles and paper. As a matter of fact, the cement sector is the largest consumer of Petcoke; and demand for Petcoke from the cement sector has not yet gained strength as construction activities are yet to pick up after the dip due to demonetization.
In a different note, Mangalore Refinery and Petrochemicals Limited (MRPL), has lowered its ex-works prices by INR 297/MT, seemingly in a bid to push up sales. With effect from 1 Feb’17, MRPL has priced its Petcoke at INR 6,067/MT (ex-works), for customers outside the Karnataka state; and for buyers inside the state, the price is quoted at INR 5,967/MT (ex-works).
In the meantime, import offers have remained unchanged. Import offer for Petcoke(6.5% Sulphur) from USA is at around USD 99-100/MT CFR India; and that of the material(9% Sulphur) from Saudi Arabia at around USD 89-90/MT CFR India.
Source: CoalMint Research
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